All good points stayer. I agree there's a lot of competition in...

All good points stayer.

I agree there's a lot of competition in the lighting area. I can only go by the fact that they managed to increase their revenue in 'public lighting solutions' by 10% last year - so it seems to be going ok at the moment. I also note they have a 'leading market share in Victorian residential development' for urban street lighting - that seems a sound base from which to build upon.

I take your point about the capital-intensive nature of hiring out equipment. On the other hand, they've reported some success in this area: 'Our Ironman Hybrid rental barrier offering grew 73% over the year.' A question is whether they can compete with the big guys. They'll lack economies of scale, but perhaps they can offset that with niche offerings, eg. they provide 'fully outsourced solutions' for safety barriers. The fact that they're small could work in their favour - that is, they'll only be a minor irritant (if that) to the big players, rather than an outright threat, so hopefully they can maintain a profitable niche without triggering any price wars. And expand their niche with focused R&D - one of the company's strengths.

On the export front, again your point is well made. Exporting is fraught with risks, though the potential rewards are large if you get it right. I was pleased to see they had a repeat order of $325k for the Ironman Hybrid delivered into the US in the first quarter of this financial year - so that's two $325k US orders under their belt. Again, they're starting small and feeling their way - exactly the right approach imho. As you say, it's early days and could work out well.