Investors have reacted favourably to news Spectur is extending the multi-year rollout of its hardware, services, and  software subscriptions with Optus Infrastructure (Optus) to protect remote assets.

Solar security, sensing and visual AI solutions company Spectur (ASX:SP3) has seen its share price rise more than 9% today after announcing it had  signed an updated Statement of Works (SoW) through a variation to Statement of Work (VA) from Optus worth an extra $956k.

The VA brings the value of the amended SoW to $2.02 million, near doubling the value of the original five-year term master supply  agreement  (MSA)  and two-year term SoW, which were signed and disclosed in an ASX announcement on November 18, 2021.

The key contracts include:

  • A Master Supply Agreement (MSA) (base terms and Goods & Services Module) with Singapore Telecommunications Limited (Singtel), for a five-year term
  • A SoW that operates within this MSA, applying to Singtel Optus Pty Limited (Optus) assets within Australia, for a two-year

The MSA was due to expire on November 16, 2026, and the SoW on November 16, 2023.

The VA document summarises the changes to an updated SoW and predominantly:

  • Extends the term of the SoW to December 31, 2025
  • Updates the goods and services to reflect optimised practices and updated tech
  • Updates the pricing and works schedules
  • Updates the estimated  value  under  the  SoW  from  $1,068,140 to  $2,023,785 (an  increase  of  $955,645)

Protecting remote assets of Optus and Australia Tower Networks

The updated SoW extends the multi-year rollout of Spectur hardware, services, and   software subscriptions to protect and service remote assets of Optus and Australia Tower Networks.

SP3 expects that purchase orders will be issued in the near term, comprising a subset of the additional $956k added to the SoW.

SP3 managing director Gerard Dyson said the company has built a positive relationship with Optus and its associated companies, including Australia Tower Networks since it started working together in 2020.

“Over this time, we have continued to work with Optus to improve and update our hardware, software and reporting systems, to suit their operations,” he said.

“This relationship and the positive impact that Spectur solutions have had in reducing theft, vandalism and disruption, has led to a continuation and expansion in the deployment of Spectur platforms,” he said.

Dyson said a key part of SP3’s strategy is to grow its income from institutional contracts.

“We see this step-up in our engagement with Optus as a validation of the return on investment that we can deliver for blue chip customers,” he said.

Dyson said the VO which will not be recorded as a sale until the purchase orders are received comes hot on the heels of a record start to sales in 2023.

“January and February sales results have continued the month-on-month growth that we saw in H1 and underpin our confidence in ongoing strong revenue growth for the balance of the financial year,” he said.

The SP3 share price has climbed 9.37% today to 3.5 cents.

This article was developed in collaboration with Spectur, 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.