An Australasian Solution for Global Parking Problems

Smart Parking Limited (SPZ, formerly Car Parking Technologies Limited, CPZ, listed in 2007) has developed and sold car parking technology hardware, software and associated products and services in New Zealand, Australia, and the UK. It acquired a car park management business in the UK offering income, downstream synergies and a test-bed. This required substantial re-direction of management effort but has now been satisfactorily worked out following management changes and property sales.

Smart Parking now has teams in New Zealand, Melbourne and the UK, rejuvenated during 2013 with the appointment of a CEO with substantial experience in the field. Its patented product suite, developed and manufactured in New Zealand, is arguably well ahead of other competitors and the company has recently won three significant and possibly pivotal contracts.

In New Zealand, the Rotorua District Council has contracted SPZ to instal 1,500 parking sensors in Rotorua's main on street parking areas and to provide ongoing parking data to the Smart Parking App (for real time on-street parking availability) and to the Council for operational purposes to assist the regulation of parking. This follows a successful trial with the Council earlier this year.

In Australia, Sydney's Waverley Council has chosen SPZ products and software at Bondi Beach. The contract was awarded to one of SPZ's distributors, APARC, for installation of 883 parking sensors at Bondi Beach's main on street parking areas, with provision of data to the Smart Parking App and the Council. Again it follows a successful trial earlier this year.

In England, Westminster City Council, London, awarded SPC a contract to provide parking sensor products and technology within the borough. This provides for a stage 1 installation of 3,000 parking sensors and provision of ongoing parking data to the Smart Parking App (for real-time on street parking availability) and to Westminster for operational purposes (including regulation).

While Smart Parking also has widespread worldwide application in off-street and institutional car parks, which SPZ is also actively pursuing, these three contracts, especially the last with the highest visibility in London's most prominent of many large boroughs beset with parking problems, indicate the level of confidence now won by SPZ.

We understand that the smaller contracts should be installed by end 2013 and the stage 1 Westminster contract operating in the first half of 2014. Watch this space!

Half-year Performance & Estimates - SPZ

Year-end June	1H12A	FY12A	1H13A	FY13A	1H14A	FY14E	FY15E
Sales, $m	1.1	12.9	11.6	20.7	11.5	22.0	29.0
EBITDA, $m	-1.2	-4.2	-1.6	-3.6	-0.14	0.40	3.5
EBIT, $m	-1.8	-5.7	-2.6	-5.7	-1.3	-2.0	1.1
Report NPAT, $m	-1.7	-5.9	-2.6	-6.0	-1.4
Adj. NPAT, $m					-1.4	-1.9	1.7
Reported EPS, ¢	-1.00	-3.00	-1.00	-3.00	-1.00
Adjusted EPS, ¢					-1.00	-0.80	0.60
EPS %FY/Growth	33%		33%	0%	0%	-73%	-175%
Dividend, ¢	0	0	0	0	0	0.00	0.00
Franking, %	-	-	-	-	-	-	-
EBITDA Margin	0	0	-14%	0	-1%	1.8%	12.1%
NPAT Margin	0	0	-22%	0	-12%	-8.6%	5.9%
ROE, %	0	-29%	-15%	-44%	-11%
EBIT/Interest	0.0	-54.7	62.9	-62.7	-18.61
Net Debt / Equity	0	-0.55	-0.36	-0.31	-0.53
CashFlow/Sh, ¢	-0.7	-2.4	-1.2	-2.7	0.3	0.00	0.00
Y/E Shares, m	133.4	152.3	152.2	208.4	208.3

Notes

Data sourced from IRESS Market Technology Limited. EPS Growth compared with the pcp is shown in most columns except the first half years which show their percentage of full year EPS. In a handful of cases, unadjusted share splits, or changes between positive and negative values, may give strange changes in ratios.

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