SP3 Trading Update Highlights: • Accelerated sales momentum...

SP3

Trading Update
Highlights:
• Accelerated sales momentum continues with revenues for first two months of current quarter exceeding sales for the entire previous quarter
• Continues the strong growth experienced in the September quarter
• Larger and/or repeat orders from national clients contribute to accelerated sales and rentals following Spectur’s opening of offices on the east coast
• Recent ramp up of capacity at Perth facility has enabled the Company to meet increased demand with existing hardware stock on hand
• Planned opening of Spectur’s Sydney office in the first quarter of 2018 has potential to drive a further increase in sales.
7 December 2017: Australian-based remote security monitoring systems and cloud based technology solutions company (‘Spectur’ or ‘the Company’) (ASX:SP3) is pleased to provide the following trading update up for the current quarter to date.
Spectur continues to experience strong sales and rental growth with revenues for the first two months of the current quarter already exceeding total sales revenue for the September quarter of $441,000.
This continues the strong growth experienced in the September quarter and comes off the back of a number of new deals announced recently, including the agreement to provide Spectur’s state-of-the-art HD4 camera systems to the automotive shutdown project in Geelong, Victoria.
December is traditionally a seasonally strong period for sales in the lead up to the Christmas break, however Spectur is also observing an increase in non-seasonal sales driven by uptake from new and existing customers. This includes a number of larger orders from national clients that have arisen as a direct result of the Company’s east coast expansion.
Spectur has been able to meet the increased demand due to the decision to ramp up production capacity in October 2017 at its Perth facility. This has ensured that the Company has sufficient hardware stock on hand to meet the demand and has also
reduced the need for an immediate increase to fixed production costs to meet the increased sales.
The Company continues to move forward with the planned opening of its Sydney operations which will take place in the first quarter of 2018. Spectur considers that the commencement of NSW operations has the potential to drive a further increase in sales off the back of the success of the Victorian and Queensland expansions.
While the Company is targeting strong quarter-on-quarter growth in 2018, the month of January is traditionally a period of lower sales volume with many clients running smaller staffing levels and less procurement taking place.
Investors should be aware that revenues are not indicative of overall financial performance or profitability. Full disclosure of the quarterly cash flow for the December 2017 quarter will be released in January 2018 as per ASX reporting requirements.
Peter Holton, Managing Director Spectur Ltd commented:
“This is a really exciting period for our Company with the demand for our innovative hardware and cloud-based security solution continuing to increase as we reach new potential clients across the east coast off the back of our expansion in Victoria and Queensland.”
“We feel like we are still only scratching the surface in terms of the potential of our product to be used across a wide range of industries and with the opening of our NSW operations and a number of new products set to be launched in early 2018 we are looking forward to a big year ahead.”