Greetings, Mikey. Interesting times while you've been away. A great example of people power delivering a just result.
I'm across the ditch and have been watching CH9 'Today' show this morning with interest. Don't know if anyone else saw it. A long segment on the new security measures about to be implemented for 'religious/Islamic' schools, including extensive CCTV coverage. Current government funding runs to A$20 miilion. Would be surprised if Zylotech didn't capture its share of this as they are already in a vertical market with the recent Catholic School announcement. Either way the trend is clear in this area.
On another note, I was once a shareholder in QRSciences (QRS). Bailed out when it became obvious they were having trouble getting the QR technology off the ground in the US. Since then they have undergone a significant transformation, including management changes and the establishment of QRSciences Security through the purchase of Baxall Australia, a large UK based distributor of CCTV etc. QRSS appears to have grown into quite a substantial business in the past 12 months. While they are currently only a distributor for various products, turnover is rapidly growing.
Without going into the detail, it's worth a look at some of the recent updates, including the announcement of Rick Stokes the new CEO, and the outgoing Chairman's address late last year. A significant point was the estimated growth of CCTV in Australia into a A$240 million PA market.
With management hinting at spinning off the QR business into a separate listed entity, and significant interest in the rapidly growing CCTV business, it would not surprise me to see overtures made to Zylotech, or indeed, Zylotech making overtures to QRS. Either way, my reading of their announcements shows significant synergies in what is clearly a dynamic fast-growing market.
Be interested to know people's thoughts, including our guru of research, Infoseeker. Whether it happens or not, the future for Zylotech as Australia's pre-emminent manufacturer and supplier of 'home grown' product appears bright indeed. Exciting times ahead. Good luck to all.
HWK Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
