The Smart Parking Ltd (ASX: SPZ) share price has soared higher today following the release of its Q1 trading update.
In late-morning trade, shares in the parking technology company have risen 9% to 12 cents. This compares to the All Ordinaries Index (ASX: XAO) which is up 0.1% to 6,252 points.
Business update
For the period ending 30 September, Smart Parking recorded a strong growth despite COVID-19 severely impacting the business in Q1.
Car volumes continued to recover, jumping 152%, and parking breach notices (PBN) issuances surged 388% since coronavirus lows in April. The result led Smart Parking to record a positive operating cash flow of $0.6 million.
The UK sales team restructure delivered 56 new site installations, meeting business performance expectations. KFC UK & Ireland installations have started with 15 sites outfitted, and 2 in New Zealand.
Smart Parking advised of technology project delays across all territories due to COVID-19. Gatwick Airport in the UK has been sent equipment, but installation has been deferred until H2 FY21. A recent Queen Victoria Market contract in Victoria will look to fit out guidance systems across 500 parking bays in the next quarter.
Total order book and work in progress remains firm at $3.2 million. The company noted an annualised personal savings of $1.2 million from a reduction in head count.
Smart Parking closed the quarter with a cash balance of $9.3 million, including a draw down loan of $2.7 million.
Outlook
As Q2 is under way, the company is seeking further growth opportunities while the market recovers to pre-COVID levels.
In the pipeline is 40 new automatic number plate recognition (ANPR) installations for the current quarter. Smart Parking is focused on achieving 1,000 ANPR installations by June 2023.
Internet of things (IoT) product launches are progressing, as the company seeks new customers, pushing for greater revenue prospects.
About the Smart Parking share price
The Smart Parking share price has failed to climb back since COVID-19 hit the market. Shares in the tech company reached a low of 7 cents in March, after trading around 24 cents the month before.
With a market capitalisation of $43 million, investors will be watching to see if Smart Parking can regain its former glory.
