Why the Future First Technologies (ASX:FFT) share price is surging 5%

The Future First Technologies Ltd (ASX: FFT) share price is on the move today, surging 5%. We take a closer look as to what's driving its shares higher.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Future First Technologies Ltd (ASX: FFT) share price is surging today. This comes after the company announced it has been awarded a significant contract for its Software-as-a-Service (SaaS) platform.

At the time of writing, the IT professional services provider's shares are trading at 8.5 cents, up 19.7%.

What's driving the Future First Technologies share price?

Investors are snapping up Future First Technologies shares as the company looks set to boost revenue growth.

According to its release, Future First Technologies advised its wholly-owned subsidiary, Asset Vision has signed a multi-year contract with Ventia.

A 50% owned associate of the Cimic Group Ltd (ASX: CIM), Ventia is one of the largest infrastructure service providers in Australia and New Zealand. The company specialises in the long-term operation, maintenance, and management of critical roads and private assets.

Under the agreement, Asset Vision will supply its industry-leading intelligent SaaS platform across a number of Ventia's roads. The software solution will play a vital role in keeping roads and transport assets safe and reliable for community use. It connects assets owners, maintainers, and contractors together to provide an integrated view of the transport infrastructure. In addition, the platform can also be combined with a dedicated mobile app for workforce management, allowing maintenance crews and inspectors to work safely.

Initially, Asset Vision will provide the SaaS platform across roads in Queensland, where the majority of upgrade works are occurring. The company's existing footprint expands over Victoria and New South Wales, where it also supplies its SaaS platform.

The deal will run for a period of 3 years, with an attached two-year extension if agreed by both parties. Other potential Ventia road contracts may also be included depending on the success of the contract.

Furthermore, Future First Technologies expects to generate more than $2 million in revenue from the initial part of the deal.

What did management say?

Ventia group executive of transport, Peter Borden touched on the new agreement, saying:

We have worked with Asset Vision since 2020 and have been impressed with the platform and quality of their team. Asset Vision understands our core needs and is aligned in building cost-effective and innovative outcomes for Ventia and our clients.

Future First Technologies CEO, Keith Falconer continued on to add:

To be selected by an industry leader such as Ventia is a satisfying endorsement of the strategic direction of FFT and we look forward to the future with growing confidence in our technology and people.

Future First share price snapshot

Formerly known as PS&C Ltd, the company's shares have accelerated in the past 12 months, up 180%. When looking at year-to-date performance, the Future First Technologies share price has gained around 60%.

On valuation metrics, Future First Technologies has a market capitalisation of roughly $38 million, with approximately 553.1 million shares outstanding.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Industrials Shares

Man sitting in front of a laptop and analysing an earnings report.
Industrials Shares

Own Brickworks shares? Here's your half-year results preview

Is Brickworks going to post a sharp profit decline next week?

Read more »

People sit in rollercoaster seats with expressions of fear, terror and exhilaration as it goes into a steep downward descent representing the Novonix share price in FY22
Industrials Shares

DroneShield share price down 36% in 6 days. Should you buy the dip?

A top broker weighs in.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Industrials Shares

Why is the Graincorp share price having such a bumper week?

Shareholders are smiling this week. And could the gains keep coming?

Read more »

Person with thumbs down and a red sad face poster covering the face.
Earnings Results

2 ASX industrials shares crashing up to 22% on earnings

Investors haven't responded positively to these results.

Read more »

a construction worker sits pensively at his desk with his arm propping up his chin as he looks at his laptop computer while wearing a hard hat and visibility vest in a bunker style construction shed.
Earnings Results

Guess which ASX 200 stock is nosediving 20% on half-year results

This company is claiming strong results for 1H FY24 but investors appear to disagree.

Read more »

a happy plumber smiles while repairing bathroom fittings in a home.
Earnings Results

Reece share price jumps 13% on stronger than expected half-year profits

Investors have been impressed with this half-year result.

Read more »

a happy plumber smiles while repairing bathroom fittings in a home.
Earnings Results

Guess which ASX 200 stock is surging 9% on robust cash generation?

Investors are bidding up the ASX 200 stock amid a sharp decline in debt and an on-market share buyback.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Earnings Results

This ASX 200 stock is surging 10% following a return to profit growth

Investors are cheering this company's turnaround.

Read more »