CEO Peter Bush of Aeris Environmental
(ASX:AEI) presented on the company’s investments to date, its global customers, sustainability margins, global certification, its track record in health care and hospitals, and its portfolio.
Aeris reported leveraging over $40 million in investments to date. Its path has led from R&D, intellectual property, regulatory approval, case studies, path to market and profitability, and it is now entering its growth phase. Its key product categories include air conditioning and refrigeration, hygiene, corrosion and SMART HUB & control.
In 2017, Aeris signed 11 new platinum partnership agreements, received first orders, and trained applicators in key markets. This included a relationship with Sodexo for the cleaning of on-site mining camps in Australia. This project is worth approximately $500,000 and will be complete by H1 FY18. Total opportunity on this one site is $865,000 per annum, with the requirement for an annual maintenance cycle.
Aeris reported on its 2017 income statement, including:
· Sustainable margin on IP protected products (in excess of 60%, with Australian production).
· On 2017 expense base, additional $6.5 million revenue is operating cash flow breakeven point.
· FY17 99% revenue growth on prior corresponding period to $2.78 million.
· 63% of FY17 revenue received from new platinum partners and key accounts. Balance of revenue from existing accounts, which are both expanding and recurring.
· Strong positive lead indicators including $15 million pipeline of new sales opportunities.
· Low fixed overheads – major expenditure on sales and marketing / revenue generation.
Peter Bush also reported on Aeris’ 2018 profitable revenue growth strategies:
· Monetise unprecedented $15 million pipeline of validated revenue opportunity.
· Scale revenue from 18 committed Platinum Partners in 12 territories – 19 agreements pending, each with minimum contractual annual purchases.
· Increase product uptake and sales development in established industry leading clients.
· Leverage commercial case studies into strong recurring revenue growth in each market vertical.
· Roll-out large scale Asset Upgrade Agreements underwriting long term, high margin annuity revenue.
· Macro focus on environmental and energy efficiency driving both corporate and government standards.
