Robo parking cop Smart Parking hits $2.3m profit
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Bad news for drivers may be good news for robo parking cop Smart Parking.
Smart Parking today reporting a $2.3 million profit and a 29 per cent increase in revenue.
Smart Parking (ASX:SPZ) makes technology that can direct drivers to empty car spaces — but also instantly identifies when a driver has overstayed a time limit, which tripled parking fine revenue in the Perth suburb of Cottesloe.
The tech itself, while causing outrage among drivers pinged for staying scant minutes over their time, is a next step for cities — real-time sensors installed in parking spaces, licence plate cameras, and RFID and an app allows contactless payments and directions to free parking spaces.
In the six months to December, Smart Parking raked in $16 million revenue – up 26 per cent from $12.7 million for the same period the year before.
Half-year profit hit $2.3 million, compared to a loss of $138,000 in the same period last year.
Smart Parking told investors it was a record half-year, spurred by new contracts in the technology division and continued rollout of its parking management in the UK.
But its share price hasn’t quite taken the same trajectory.
The shares closed up 2 per cent at 26c on Monday, spiking from 20c over the previous week — but yet to regain a high of 31c a year ago.
“Strong growth in our Parking Management business, significant Smart City contract wins in the Technology division and strategic partnerships with Telstra and Google are providing positive momentum heading into the second half of FY18,” chief Paul Gillespie said.
Its parking management divison currently generates 85 per cent of the company’s revenue, but further contract wins are expected to come to fruition in the tech division in the half to come.
Contracts with Moonee Valley City Council, orders from Wilsons Parking, Telstra and Coles are all expected before the end of the financial year.
Further, a full-scale solution for the City of Adelaide is under a letter of intent to be completed by June 30.
All this with just $300,000 spent on R&D on the tech for this period.