• Harvest Technology Group looks to growth in 2025 after a big 2024 (to date)
  • CEO and executive director Ilario Faenza said the company is well placed to achieve three-year profitability plan
  • Board earlier this year undertook a review of the performance and direction of company to ensure its commercial success

 

Special Report:  It has been a big year for Harvest Technology Group as it aims to transform the market for real-time video streaming, live voice and live data and implement its three-year plan to reach profitability. 

 

At its recent AGM Harvest Technology Group (ASX:HTG) CEO and executive director Ilario Faenza said the company had kicked some major goals throughout 2024 with the board and executive team “laser focused on continuing to improve and enhance the company”.

Faenza said tech solutions provider (specifically focused on overcoming challenges associated with remote video and data streaming) was now a sales-driven technology organisation concentrating on the marketing of its products and support services.

“We have secured new investors with a major investor having invested $2.2 million over the past months with an additional $1m committed for December.”

Faenza revealed that HTG has finished its restructure and now has an efficient cost base, resulting in a much lower breakeven point from $14m to $6.5m, adding that minimising operating cash burn is a crucial step on the company’s pathway to profit.

“With projected cash burn of $225K a month from January, the company is well placed to achieve profitability,” he said.

“Finalisation of the restructure equals $6.5m revenue breakeven point without impacting our sales and marketing drive.”

HTG is “confidently on track to execute its pathway to profit plan by FY26 or even sooner”, noted Faenza, emphasising that “profitability is more achievable and potentially on an accelerated timeline”.

 

Underestimated challenges of transformation

The HTG board earlier this year undertook a review of the performance and direction of the company to ensure its pathway to commercial success was optimised to deliver strong growth, elevated recurring revenue and increases in market share.

Chairman Jeff Sengelman said the review found that the board had underestimated challenges of transforming a company that primarily focused on oil, gas and the mining sectors to become a technology software-as-a-service company (SaaS) provider.

He said while the board was confident its technology was market leading, its ability to convert to sales in contracts and revenue was falling below expectations.

“Our overheads were too high for the revenue and sales we were generating,” he said.

“We needed to find ways to improve our efficiency, lean out our business model and increase productivity.”

He said questions also arose as to whether HTG had the right balance and match of expertise and sector experience for the company’s growth plan.

“We needed more people with different expertise and a better match to our requirements in the future,” he said.

In January the board made a range of decisions including new leadership and executives with the right balance of experience and expertise.

“Over the following 10 months we supported a strong program of improving productivity and efficiency and leaning out our business model,” he said.

The company’s approach to development and sales was also re-imagined.

“We’ve engaged professional individuals and teams with a particular emphasis and expertise in Europe and North America,” he said.

“Finally, we rebooted our relationship with all our existing clients.

“Now we place significant emphasis on engaging them, supporting their needs and making sure our clients are happy.”

 

‘Everything I want in one company’

After being appointed interim CEO earlier this year, Faenza took on the role of leading the company in August.

“It has a great team, great technology which is Australian built, and we’ve got great clients including global corporates and NATO members,” he said.

“Harvest Tech has everything I want in one company.”

Recently the company established the subsidiary Harvest Technology Europe Ltd (HTE) in Ireland to relaunch its Nodestream product range across the UK and European markets.

The company has also inked a reseller agreement with US-based satellite solutions provider Pulsar Beyond via their Pulsar Solution Inc entity.

Faenza said its margin on licences and software was 90%, with resellers helping reduce marketing costs and providing geographic spread.

“We’re targeting a lot of industry segments from defence, emergency services, maritime, mining, traditional oil and gas.

“We’re leveraging our expert team to provide professional services to Nodestream customers.

“Previously these services were provided on an ad-hoc basis, now commercialised as a professional services offering based on customer feedback.”

Faenza summarised that the company would continue to focus on its product offering, driving down costs and getting to breakeven.

 

This article was developed in collaboration with Harvest Technology Group, a Stockhead advertiser at the time of publishing.  

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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