Starcom beefs up revenue with $0.5m cattle monitoring contract

Starcom entered into a new agreement with Xplosive Solutions which will see Starcom supply Kylos cattle monitoring technology to the South African farm protection outfit.

Under the terms of the new agreement, which is for a 36-month period, Xplosive will pay a monthly fee for each Kylos unit to cover the product cost and ongoing SaaS fees, with Starcom expecting to receive approximately $0.5m of revenue over the full length of the agreement.

Avi Hartmann, chief executive of Starcom, said: "In an industry worth over $2bn, and with cattle herds containing thousands of heads, cattle theft has become a serious problem in the South African market. Starcom has worked with Xplosive to develop a cost effective and reliable solution to offer security and theft prevention to the South African cattle industry, as well as to speed the process of rounding-up cattle which graze over large tracts of land."

In October 2017, the AIM traded company entered into a supply and support agreement with Xplosive to sell Kylos units, though this arrangement was delayed in July 2018 whilst Xplosive developed a collar for the cattle and negotiated with local telecom providers.

Consequently, no revenues were generated under this original agreement.

Starcom's shares were up 1.69% at 1.50p at 1252 GMT.