Stock to Watch: REDFLEX HOLDINGS LIMITED 08:20, Wednesday, 2...

Stock to Watch: REDFLEX HOLDINGS LIMITED
08:20, Wednesday, 2 June 2004

COMPANY'S THREE WINNERS IN A ROW HAD TO LIFT THE SHARE PRICE
Sydney - Wednesday - June 2: (RWE)

**********************************
OVERVIEW
********

If you took a speedy recovery into account, Redflex Holdings Ltd
would surely get one of its own speeding tickets.

Shareholders have had a roller coaster ride this year with the
shares now on a high for the year of $2.25 while the low for the same
period was 47c.

However, Redflex has seen at least $3 during the tech dot com
boom.

RWE has followed the stock for years and remembers writing up the
company when it was 80 odd cents and then in March at $1.63.

You've got to say though, somebody has to get some joy out of a
company that costs you a mint when you're caught on the wrong side of the
speed limit.

The latest diabolical is two cameras which pick you up on the fly
with the first camera and then does a measurement with the second by
image identification.

It's looks to be a motza revenue raiser for the government.

Yesterday, Redflex announced it had been awarded the contract
worth $1.2 million by the Roads and Traffic Authority to supply the
Redflex Point-to-Point speed detection systems for trials throughout NSW
starting this month.

NSW Minister for Roads Carl Scully said the new Point-to-Point
Speed Cameras were the state government's latest initiative in its
ongoing campaign to get drivers to slow down.

The cameras used optical character recognition
to record the number plate of a vehicle as it passed the first camera
which was then compared with an image of the vehicle as it passed the
second camera.

The cameras know how long it takes to legally cover the
distance between the two points; if the vehicle has reached the second
camera too soon, it must have travelled above the speed limit for some
of the way.

Chief executive of Redflex Traffic Systems Mr Bruce Higgins
said the project builds on its experience where Redflex has over 100
cameras installed in NSW for public safety speed enforcement, toll
enforcement and bus lane enforcement.

"This win continues the Redflex leadership in Point-to-Point
Speed Detection Systems, an important market for the company.

In a second announcement on Monday the company reported it had
been selected to provide communications systems for the Battle Control
System-Mobile (BCS-M), an ongoing United States Air Force program to
update and eventually replace the legacy ground theatre air control
system control and reporting centre (CR) command and control (C2) system.

Redflex has teamed with US based Innovative Solutions Consulting
Inc, providing a local integration capability for this program.

The Air Force can issue delivery orders totalling up to the
maximum amount indicated, though actual requirements may necessitate less
than this amount.

The total contract value is expected to be in the order of $17
million over the four years.

This will be Redflex's fifth contract with the US Department of
Defence in just eight months.

And just for good measure Redflex dropped another winner
yesterday disclosing that it had been awarded two new contracts to
provide public safety solutions with photo enforcement for municipalities
in California.

The contracts are are with City of Paramount for the provision
of up to 10 red light enforcement systems over a term of five years with
two one-year options for extension; and the City of San Mateo for up to
20 red light enforcement systems over a term of five years with two
one-year options.

SHARE PRICE MOVEMENTS

**********************

Three good pieces of news in a row just had to get a reaction
from traders.

It did.

Yesterday buyers jumped into the stock and lifted the price 18c
to $2.24 while the price touched a high of $2.25 for the year.

The market had been waiting for some solid signals to confirm
that the half year profit recovery was no fluke.

After umpteen lossses directors earlier this year reported a
profit of $773,000 for the December half.

This represented a $2.1 million turnaround on the corresponding
period in the previous year.

Revenues increased by 27 per cent to $13.9 million over the same
period.

This increase was despite the significant adverse movement in the
AUD/USD exchange rate, which increased by about 33 per cent over the
twelve months ending December 31, 2003.

The company makes, owns and operates red lights and speed camers
in 10 countries - mainly in the US and Australia.

Redflex looks upon the US as its biggest growth market and
already has 47 contracts across the US, most of which has been written in
the past nine months.

Redflex slowed down expansion a couple of years back to develop a
digital system which is now paying off.

Redflex now claims it is installing cameras at the rate of 15 a
month.

While the company carries the cost of each camera and
progressively writes it down, Reflex says it receives $US90 for each
infringement.

It's no small beer.

BACKGROUND
**********

Redflex Holdings Ltd was listed on the Australian Stock Exchange
in January 1997.

Over the last decade, the Redflex Holdings Group has established
itself as a world leader in traffic management, road safety, defence,
transport, security and communications products.

Redflex Holdings consists of two distinct but complementary
companies; Redflex Communications Systems and Redflex Traffic Systems.

Each of the Redflex companies provides customers with
technologically advanced solutions specifically tailored to meet their
individual requirements.

The Group is based in South Melbourne, Victoria, where it runs
its own systems engineering operation as well as complex system
integration and research and development programs. Anin-house team of
more than 80 professional engineers is supported by experienced
Managerial, financial and administrative personnel.

Redflex Holdings employs more than 140 people in Australia and
the USA, with offices and representatives located throughout the world.

All operations are independently certified to the international
quality standard ISO9001.

Redflex Holdings Ltd is certified as a Quality Endorsed Company
QEC 3118.

Copyright © 2004 RWE Australian Business News. All rights reserved.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Cheers,

Fig Jam