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Artificial intelligence-enabled driver behaviour monitoring technology company Acusensus (ASX: ACE) has made a breakthrough in New Zealand with a tender that could bring in NZ$92 million ($83.45 million) for a nationwide mobile speed camera enforcement program.
Acusensus has been selected as the successful supplier in the tender, signing a master services agreement and subsequent statement of work with the New Zealand Transport Authority Waka Kotahi (NZTA).
The estimated value of $83.45 million for the program is for an initial five-year term, but this is still subject to final negotiation and reaching an agreement on the statement of work - worth NZ$5.2 million ($4.7 million) - for full service delivery. If finalised, deployment will start next year.
Currently the company only generates 4 per cent of its $50 million in annual revenue from international operations, with significant progress in the US and UK in particular.
"I am proud to be working with the NZTA on a country-wide initiative that will save lives," says Acusensus managing director and founder Alexander Jannink.
"Through adoption of both vehicle and trailer-based enforcement, the government of New Zealand is introducing a pioneering approach to road safety," says Jannink, who won the 2023 Australian Young Entrepreneur Award - Trailblazer.
"Following on from successful initiatives by New Zealand Police to reduce road casualties through enhanced breath testing operations, this speed enforcement program will increase enforcement capabilities to deter dangerous speeding across the road network and will reduce crashes and casualties."
Today's news coincides with Acusensus revealing plans to raise up to $12 million through the issue of 11.1 million new shares, with the fresh funds intended for investments to scale up operations for supporting anticipated contract wins.
The funds, to be raised via a $10 million institutional placement and up to $2 million from a share purchase plan (SPP) at no discount to the last trading price of $0.90, will specifically be put towards business development, new product innovation, equipment expenditure and working capital.
Jannink and Acusensus chair Ravin Mirchandani will sell down a total of $3 million worth of their own shares at the same time, but the company emphasises both remain "engaged and enthusiastic directors".
In the year to date the group has recorded revenue of $19.2 million, up 19 per cent year-on-year, while earnings are up 35 per cent at $2.8 million.
At the group's annual general meeting (AGM) last month, Jannink described Acusensus as a world-leading pioneer in developing and providing solutions for the "fatal five" sources of death on the road - speeding, distracted driving, not wearing your seatbelt, driving fatigued, and driving impaired.
"We were the first in the world to enforce mobile phones with camera systems, first for seatbelt, and now first in the world for multifunction enforcement delivering a single asset that deters speeding both at a point and over a distance, while also deterring phone use and seatbelt non-compliance," he said.
"I'm proud to say that our company has undoubtedly prevented crashes, prevented injuries and saved lives."
Jannink forecast continued domestic growth in FY25 as well as 100 per cent growth for subsidiaries in the UK and the US.
"A key catalyst for the founding of Acusensus was the needles death of my friend James in Los Angeles. It is a large market for traffic enforcement services, with the largest USA enforcement provider having revenues six times those of the largest in Australia," he said.
"It is only one year ago that active ongoing enforcement began in the USA, with our program of trailers with North Carolina State Highway Patrol. Fast forward a year and we've added several data collection customers as well as another two states for ongoing active enforcement, being Georgia and Arkansas.
"Since then, two further states have been granted federal funding to support Acusensus enforcement programs. We look forward to progressing through contracting and mobilising these states through FY25."
The company also secured an expansion into Western Australia with a $9.4 million contract in October, following the deployment of its 'Heads-Up' fixed site systems in neighbouring South Australia a few months earlier.
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