RDF 0.00% 95.8¢ redflex holdings limited

re: wins minneapolis?--for ishmael Every US state comprises a...

  1. 688 Posts.
    re: wins minneapolis?--for ishmael Every US state comprises a multitude of cities and towns mostly each with their own individual police force. Some literally one man, a horse, and a dog sort of thing. Most are too small to have the technical expertise and/or the cash to buy this very expensive gear upfront, install it or run it.

    This plus the tendency in the US to outsource a lot of government functions has led to preference in the US for an outsourced business model which Redflex calls a BOOM model. That is build, own, operate and maintain. No upfront cash outlkay by the city and payment to Redflex is then by a fixed monthly amount or a per citation cut.

    In contrast all Australian states and the vast majority of Europe is just outright sale business, much skinnier one-off margins and whilst still reasonably good business it has nowhere near the profit potential.

    Redflex has a real advantage in the US in that it clearly has the best complete system, camera shot to citation in the mail, with a number of the other suppliers still battling to get an acceptable straight through system going.
 
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