T42 progresses transition to lease-based contracts

Shipping container tracking technology specialist T42 IoT Tracking Solutions said in an update on Thursday that, despite global supply chain issues and ongoing business recovery from the Covid-19 pandemic, its total revenues for 2022 were set to total around $4m.

The AIM-traded firm said that would include about $2m of software-as-a-service (SaaS) income, representing 50% of its total revenue for the year.

It said the result left it well-positioned for the new year, with numerous opportunities and potential new key customers.

The company said it continued its expansion and transition into the shipping container business sector, with a number of pilot studies with potential new customers.

As a result, the initial orders from clients in the US, South America and Israel had been received, indicating a positive outlook for 2023.

The firm also announced the appointment of Openbox as a new distributor in the US in the year.

It said that although so far it had not performed in line with expectations, T42 had succeeded in directly winning new business in the US, as announced in January, with further orders expected to be received during the course of 2023.

Looking ahead, the company said it was targeting significant revenue improvement in 2023 based on continued business with existing clients, including ongoing SaaS revenues.

At the same time, it was focusing on the need to accelerate upfront cash payments to suppliers to shorten the supply chain period, and ensure delivery preference.

The board said it was also continuing to explore acquisition opportunities to further broaden the firm’s business base, and strengthen its presence in its key markets.

“We move forward with the new potential customers while implementing the lessons learned from the completed pilots and existing business,” said chief executive officer Avi Hartmann.

“Our new strategy focusing on shipping container businesses has proven itself, with increasing demand for our products and services.

“With the new offering of lease-based contracts, the T42 board is looking forward to the coming year with confidence.”

T42 said it would announce its audited results for the year ended 31 December in March.

At the close on Thursday, shares in T42 IoT Tracking Solutions were flat at 5.75p.

Reporting by Josh White for Sharecast.com.