Shares in speed camera technology firm Acusensus Ltd (ASX: ACE) have hit a new record high after the company snagged its first major, statewide US contract.
The shares traded as high as $1.74 on Tuesday, up 24.6%, before settling to be changing hands for $1.65 by mid-afternoon, up 17.9%.
Shareholders in the company, which was valued at $197.2 million at the close of trade on Monday, are sitting on healthy gains in recent months, with the stock tripling from levels as low as 55 cents as recently as July.
The company develops artificial intelligence-enabled technology for use in law enforcement, including cameras that can detect illegal driver behaviours such as mobile phone use and speeding.
Image source: Getty Images
Critical step up in the US
Acusensus said in a statement to the ASX on Tuesday that it had been awarded its first major, statewide, automated enforcement contract in the US, worth US$22.6 million (about $34 million).
The program, to be rolled out in collaboration with the Connecticut Department of Transportation, will start in November this year and is expected to run for five years.
It involves the deployment of up to 15 transportable speed enforcement cameras at any given time, the company said.
Under the contract, Acusensus is also required to perform image review services, including licence plate lookups and the preparation of violation notices to be mailed to speeding drivers. As usual, Acusensus will retain ownership of camera assets and is responsible for deploying and maintaining those assets.
Acusensus Managing Director Alexander Jannik said signing such a substantial contract in the US was a significant milestone for the company.
This contract marks a step change in our US business and validates a well thought out strategy that we have set in motion over a number of years to grow the business in multiple sequential stages. Securing our first automated enforcement program is a pivotal achievement. With the relentless focus our team has on delivering programs on time and delighting our customers, I am confident this program will serve as an exceptional reference point to enable further successes in our US business.
Acusensus said it had also recently been awarded contracts to provide five speed enforcement trailers in Kentucky for a pilot program for real-time work zone speed enforcement.
This builds on the contract the company announced in September, under which it would supply multi-function, fixed site enforcement cameras to the WA Road Safety Commission.
Revenue building nicely
Acusensus in August reported revenue of $59.4 million, up 20% on the previous financial year, and a net loss of $2.6 million, up from a loss of $1.5 million.
The company's operating cash flow was positive, increasing 131% to $8.3 million.
