Demand growing for Simble’s bundled energy solutions
Simble Solutions Ltd (ASX:SIS) an Australian software company focused on energy SaaS and Internet of Things (IoT) solutions has been awarded a five year contract to provide energy analytics and control solutions to a leading UK confectionery manufacturer, distributor and retailer (the customer) in partnership with Powercor Limited.
The awarded contract is another significant win as Powercor will commence with the installation of 30 bundles of the Simble Energy Platform, consisting of IoT hardware and software, with the potential to quickly deploy a total of 450 bundles across the customer's manufacturing sites.
Simble’s technology is offered under a five-year recurring Software-as-a-Service subscription model and in the event of a successful expanded rollout would be considered material to Simble and significantly contribute to the company’s recurring revenue run rate.
This would be viewed favourably by investors who are targeting tech stocks with revenue visibility, predictability of income and exposure to essential services industries such as energy.
Second recent project with Powercor
The awarded contract is the second important project between Simble and Powercor in recent weeks as demand for its bundled energy efficiency solution continues to rise.
This string of contract success has triggered a substantial increase in Simble’s share price since the end of June, up approximately 50% in a matter of weeks.
The Simble Energy Platform will be deployed alongside smart lighting installations of one the world’s largest LED lighting manufacturers, providing detailed measurement, reporting and verification of all energy efficiency initiatives.
The UK customer has over 300 locations across the UK including retail outlets, franchised operations and manufacturing facilities.
Powercor benefiting from Simble’s technology
Underlining how instrumental Simble’s technology has been in helping to drive progress for his own company, Chris Wright, Technical Director of Powercor said, “We have won another substantial contract and Simble’s technology helps us to deliver scale with low touch.
‘’The inclusion of Software-as-a-Service allows us to win these highly competitive contracts and offer our products under a recurring subscription model, which eventually leads to more value and better services.
‘’We are very pleased with the success in recent weeks and are confident to deliver additional projects in due course."
Simble chief executive Fadi Geha noted that this development was further validation of management’s UK expansion strategy, highlighting the accelerating momentum the group has experienced since the beginning of the calendar year.
He believes the contract has the potential for significant growth, and importantly, it could provide a substantial boost in recurring revenue.