Traffic Technologies Limited (ASX:TTI) Managing Director Con Liosatos talks 1H18 results, technology and markets.
Jessica Amir: Hi, I'm Jessica Amir for the Finance News Network. Joining me from Traffic Technologies is Managing Director Con Liosatos. Welcome.
Con Liosatos: Thank you.
Jessica Amir: First off, for investors new to the company, could you give us a quick introduction?
Con Liosatos: Traffic Technologies has been around for some 12-odd years, specialising in traffic systems for governments, councils, and infrastructure projects, here and of course in New Zealand and offshore.
Jessica Amir: Now to your first half 2018 results, Con, what were the highlights?
Con Liosatos: Yes, we've had a strong result both financially and operationally, with revenues up, profits up, and cash flows up as well. Operationally, we had efficiencies through the factories which has given us these results.
Jessica Amir: And Con, you're in the midst of a capital raise via a rights issue, how much are you looking to raise and what's the position post-raise?
Con Liosatos: The rights issue will be $6.3 million. Post-raise, we will have approximately debt levels of $12.5 million, a market cap of $14 million, and an enterprise value of $25 million.
Jessica Amir: Now to your products in a little more detail, just tell us about the lighting systems.
Con Liosatos: Okay, the lighting system was developed some three years ago. It came off the back of government's need, being road authorities and or councils to reduce power and maintenance. So our product now currently being deployed across the east coast, including South Australia, saves 60 per cent in power, and 80 per cent in maintenance.
Jessica Amir: And your signal controllers?
Con Liosatos: Our signal controller's been a great success to the company in exporting pretty much 80 per cent of its revenue now comes from offshore, across the Middle East, Asia, and the Americas.
Jessica Amir: And tell us about your software solutions.
Con Liosatos: That's the newest in developments. It's been 12 months in the making, we have deployed it now across Victoria for the road authorities. It's predominantly around a smart city concept, where we take assets from councils and road authorities. We're to be able to monitor it for long term.
Jessica Amir: And Con now, to the advances in traffic technology, just tell us what's happening around the globe and how does that impact the firm?
Con Liosatos: Autonomous vehicles, of course, is the future of motor vehicles around the world, where it's actually coming into age now is where all the assets, government assets and software platforms like our smart city platform, is to be able to communicate what we call "V to X", vehicle to infrastructure being the motor vehicle.
Jessica Amir: And lastly Con, what's the focus for the next six months, and longer term?
Con Liosatos: The focus will be to increase our role out of our smart city platforms, increase on production and operation efficiencies, and increase on export initiatives, offshore on a market that we built to date.
Jessica Amir: Con Liosatos, thank you so much for your update.
Con Liosatos: Thank you for having me.