Traffic Technologies jumps to 18-month high on the back of five-year Ausgrid deal
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Shares in lighting and signals company Traffic Technologies (ASX:TTI) bounced this morning after the company landed a long-term traffic infrastructure project.
The company was approved by major NSW network operator Ausgrid, to supply LED streetlights and “associated hardware” as part of its broader maintenance program.
The deal is for a minimum of three years with a two-year option. Traffic Technologies said it was not yet able to provide an estimate of potential revenues, but flagged a “significant opportunity” in the years ahead based on its understanding of Ausgrid’s future plans.
Investors sent TTI shares back above 3c in morning trade for the first time since January 2019.
Over the course of the term, Traffic Technologies said it expected to supply a total 64,000 LED lighting units — 30,000 for pedestrian street lights, 30,000 for road traffic lights and 4,000 for floodlight luminaires.
Managing director Con Liosatos said the contract was won following an “extremely comprehensive and technical tender process”.
The company said the deal was part of a “major transformation” in Australia’s road lighting infrastructure towards LED systems.
As part of Ausgrid’s five-year regulatory approval plan through to 2024, it will shift to the use of environmentally-friendly LED lights.
“LED luminaires are to be used as the default luminaire type for all new and replacement lighting on the Ausgrid distribution network,” Traffic Technologies said.
Acquired by AustralianSuper and IFM Investors for $16bn in 2016, Ausgrid provides electrical network services for around 1.8 million customers across greater NSW.
Shares in consumer finance platform MoneyMe (ASX:MME) also jumped sharply after the company announced a new product offering to compete in the buy now, pay later (BNPL) space.
The company said its MoneyMe+ platform would provide customers a “shop now and pay later” option for purchases between $1,000 and $50,000.
MoneyMe will then offer interest-free repayment terms of between six and 48 months.
The company said it launched the new offering with an “experienced team of ex-Zip Co sales professionals”, and was targeting a range of industries including solar, healthcare, cosmetics, home improvements and education.
Along with its new BNPL feature, MoneyMe said it had now passed the $500m mark in total loans written, from total loan volume of around 240,000 — around 35 per cent of which were written in the 2020 financial year.
Shares in MME jumped 25 per cent in morning trade, and are up almost 40 per cent over the past week.