RDF 0.00% 95.8¢ redflex holdings limited

Rowland, you've zeroed in on the main task for Redflex now, that...

  1. 688 Posts.
    Rowland, you've zeroed in on the main task for Redflex now, that is their installation ability. 12 months ago the CEO appointed a VP installations, I hear he is a control freak (great when you're handling a number of subbies) and he has proved to be a good operator.

    When the company said 10 a month they actually did 15, now they're saying 15 I'd estimate by June it will be 20 (March was 17). By the end of the year I think they will be on 25. So even by the end of this year they will be a long way ahead of the figures you have mentioned. Of course they will not stop at 25pm, you can be sure this CEO will ensure they install at a rate to match the backlog. Really just a mechanical process except that quality is a must and the CEO and Installations guy are very focussed on keeping each installation a top quality one. As the number of installation teams increases (presently 3) it becomes easier to form the next team with one or two experienced guys from the other teams.

    As Paul 100 has said, sometimes cities will require two or even 3 lots of systems over 12,18 or 24 months. There's also the problem in California in the slowness of Caltrans to approve installations on state highways which of course increases the backlog.

    Once a contract is signed it can take anything up to 6 months for all the surveys and paperwork to be done plus a number of the clients depts have to learn to work together such as engineering/town planning/police/courts/motor registry, etc.

    My estimate is that they have 350+ in the backlog, of which probably about 150 are for installation in the next 6 months (so that's a rate of 25 per month) Not a bad trick is to whip around and put a couple in each city thus setting the 30 day warning (no fine) period going as the 30 days is calculated just from the date the first system is installed, instead of say putting in 10 or 20 all together and then having all those subject to the 30 day period.
 
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