Acusensus (ASX: ACE) Announces $16.6M Queensland Speed Camera Contract Expansion
In a significant investor update, Acusensus Limited (ASX: ACE) has announced a major contract expansion with the Queensland Government. The Acusensus Queensland speed camera expansion is valued at an additional $16.6 million and will double the state’s existing AI-enabled transportable speed enforcement capabilities. This development follows a highly successful initial deployment that demonstrated a substantial reduction in dangerous driving behaviours.
This new agreement, detailed in a recent ASX announcement, underscores the effectiveness of Acusensus’s technology and strengthens the company’s recurring revenue base. Deployment of the new units is scheduled to begin in November 2025 and continue throughout 2026.
Initial Programme Success Drives Expansion
The decision to expand the programme was based on compelling performance data from the first phase. During the initial seven months of operation, the existing Acusensus transportable enforcement solutions recorded a 92% reduction in excessive speeding incidents. This metric provides clear evidence of the technology’s ability to modify driver behaviour and improve road safety.
The Queensland Department of Transport and Main Roads has authorised the deployment of additional Harmony transportable solutions, doubling the number of trailer-based units. This move validates the government’s strategy of using proven technology to address road casualties, where speed remains a primary contributing factor.
What are the contract details for the Acusensus Queensland speed camera expansion?
The contract provides a clear framework for the rollout and operation of the new speed enforcement units over the coming years.
Key Contract Financials:
| Metric | Details |
|---|---|
| Additional Contract Value | Approximately $16.6 million (excluding GST) |
| Initial Service Term | Five years for each newly deployed unit |
| Extension Options | Two optional one-year extensions available |
| Revenue Model | Service-based recurring income |
| Deployment Timeline | Commencing November 2025 through 2026 |
The agreement is structured as a service-based recurring revenue model. This approach provides Acusensus with predictable, long-term revenue streams and typically offers higher margins compared to one-time hardware sales. For the government, it ensures continuous operational support and system maintenance from the technology provider.
How will the Acusensus Queensland speed camera expansion improve road safety?
The expansion is set to directly enhance road safety across Queensland by increasing enforcement coverage in high-risk areas. The proven ability of the technology to reduce excessive speeding is expected to lead to a lower probability of speed-related road casualties.
Alexander Jannink, Acusensus Founder and Managing Director, commented on the programme’s impact. “The Queensland government road safety camera programme has been very effective at changing driver behaviours, and we’re pleased to be able to support the expansion of this life-saving programme with Queensland’s Department of Transport and Main Roads,” Mr. Jannink stated.
Expected Road Safety Outcomes:
- Broader enforcement coverage across Queensland’s road network.
- Targeted reductions in speeding in high-risk corridors.
- Improved overall compliance with traffic speed limits.
- Contribution to a stronger road safety culture through consistent enforcement.
Why is the recurring revenue model important for Acusensus?
The service-based nature of the Queensland contract is strategically important for Acusensus and its investors. A recurring revenue model offers several advantages over traditional equipment sales, creating a more stable and predictable financial foundation for the company.
Benefits of Recurring Revenue:
- Predictability: Multi-year contracts provide clear visibility of future earnings.
- Cash Flow Stability: Regular, ongoing payments support operational and investment planning.
- Higher Margins: Service agreements often yield a better margin profile than hardware sales.
- Customer Retention: Long-term partnerships are established, creating opportunities for future technology upgrades and extensions.
This financial model is crucial for technology companies like Acusensus, as it supports sustained growth and continuous innovation. The optional extensions for the Queensland contract could potentially provide revenue visibility through to 2033.
Investor Outlook and Company Profile
The $16.6 million contract expansion is a significant commercial milestone for Acusensus. The company, which listed on the Australian Securities Exchange in January 2023, has a market capitalisation of approximately $254.9 million, with 141.6 million shares on issue.
While this agreement focuses on Queensland, Acusensus operates globally with offices across Australia, New Zealand, the United Kingdom, and the United States. This international presence positions the company to leverage the success of the Acusensus Queensland speed camera expansion to secure similar contracts in other jurisdictions.
The company’s technology portfolio also extends beyond speed enforcement to address distracted driving, seatbelt non-compliance, and road worker safety systems, providing diversified avenues for future growth.
Want more ASX news?
Looking to stay ahead of major developments in ASX technology companies? Subscribe to StockWire X’s free Big News Blasts and join over 20,000 investors receiving instant email alerts on significant technology announcements, each accompanied by detailed analysis.
With a quality filter ensuring only major news events are distributed, subscribers gain access to the most important market-moving information without the noise. Join today to receive comprehensive insights delivered directly to your inbox.