Smart Parking Limited (ASX:SPZ) is experiencing substantial revenue and margin growth, according to its recent presentation. Over the last five years, the company has demonstrated a consistent upward trajectory, bolstered by strategic acquisitions and organic expansion. A key development is the February 2025 acquisition of Peak Parking in the USA, providing access to key markets like Texas and Florida. This acquisition is expected to be over 25% EPS accretive in FY25 on a pro forma basis.
In H1 FY25, Smart Parking saw considerable growth across its operating regions. The UK reported a 22% increase in ANPR sites, while New Zealand witnessed a 64% surge. Germany and Denmark also showed substantial growth, with 67% and 34% increases respectively. Revenue growth has been strong across all markets with FY25 year-to-date revenue up 19% compared to the prior corresponding period.
The company leverages proprietary technology and deep domain expertise to enhance parking solutions. Their SmartCloud AI engine processes over 400 million images annually, enhancing the accuracy of contravention monitoring. Smart Parking issues Parking Breach Notices (PBNs), with 515,000 issued in H1 FY25. The company’s growth strategy focuses on organic expansion, new territories, and acquisitions. They aim to add 3,000 new organic sites by December 2028, highlighting a disciplined international expansion and M&A approach.
The H2 FY25 trading update reveals continued growth across all markets. In the UK, PBNs increased by 15% year-to-date. Germany saw a substantial 36% increase in PBNs. New Zealand experienced a 43% increase. The company is also focused on expanding into new territories, including Scandinavia, mainland Europe, and the USA, with disciplined selection criteria focusing on strategic fit and earnings accretion.
