From 31 January 2017, Redflex Holdings Ltd
(ASX:RDF) will no longer provide traffic violation processing services in the Eastern and Aseer provinces of Dubai.
Redflex, which supplies digital speed cameras and red light cameras amongst other related products, has received a notice of termination from the Saudi Technology & Comprehensive Control Co Ltd (which trades as Tahakom).
Redflex’s subsidiary, called Traffic Operating Services (Saudi Arabia) LLC, previously entered a contract with Tahakom. That contract required Redflex's subsidiary to provide traffic violation processing services to the Saudi Arabian Government. In the 2016 financial year, the Agreement generated $7.2 million in revenue for Redflex.
Regardless, the company says it still expects to continue supplying photo enforcement equipment and software for traffic enforcement programs throughout Saudi Arabia.
Redflex posted a net loss of $4.7 million at 30 June 2016.
