Traffic Technologies Ltd (ASX:TTI) Highlights Strong Order Book and Cost Reductions in Quarterly Report
Financial Performance
Traffic Technologies Ltd reported revenue of $9.9 million for the half year ended December 31, 2024. The company’s net operating cash outflow was $3.3 million for the quarter, impacted by capital constraints within its working capital facilities.
Operational Achievements
The company’s order book remains robust with forward orders exceeding $6.8 million and long-term customer contracts valued over $25 million. Traffic Technologies completed the consolidation of its buildings and manufacturing operations in New South Wales, contributing to annualised cost savings of $2.2 million in FY24 and an additional $2.0 million in the first half of FY25. Additionally, the company was awarded a contract to supply “Smart City IoT“ ready LED streetlights to Sydney City Council, valued up to $5 million over a nine-year term.
Financing and Capital Raise
In Q2, Traffic Technologies secured a Convertible Note Agreement for USD $3 million and an additional $8 million trade finance facility from Season Group. The company also completed an entitlement offer, raising $175,000, with a shortfall offer aiming to raise a further $2.6 million by March 13, 2025.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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