Technology

Smart Parking’s share price gains on back of higher fine revenue

Mon 20 Jun 22, 2:36pm (AEST)
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Key Points

  • Smart Parking’s installation of AI licence plate recognition tech up 32% year-on-year (YOY) to 816 assets
  • UK parking breach notices, of which Smart Parking takes a cut, are up 71% YOY
  • Parking breach notices in Asia Pacific locations are up 83% compared to H1 FY22

Smart Parking (ASX:SPZ), a licence plate AI recognition tech provider, has seen a 3% jack-up today on strong operational performance. 

The company reports a current total of 816 AI-enabled assets across the UK, Australia and New Zealand, reflecting a 32% growth in installations compared to this time last year. 

Smart Parking’s revenues ultimately come from parking breach fines handed out by cities and townships who take on Smart Parking’s tech solutions. 

While that might be bad news for disorganised drivers, Smart Parking’s shareholders are taking interest. 

In under two years, Smart Parking's revenue across Australia and NZ has seriously grown
In under two years, Smart Parking's revenue across Australia and NZ has seriously grown

A healing economy? Parking fines are up in UK and Oz 

The growth rate in parking breach notices at sites using Smart Parking tech in the UK are up 71% YOY. 

At the same time, growth in parking breach notices at carparks in Australia and New Zealand are up 83% compared to H1 FY22.

While these data-points underscore the efficacy of Smart Parking’s AI tech, they also suggest a larger macro trend: more and more drivers are heading back to the city for work and recreation.

It is also worth considering in current conditions, drivers may possibly be more inclined to risk a fine and save a few dollars by forgoing parking payments. 

Also important for UK data: more drivers out and about in the summer period. 

200 sites per year moving forward 

Smart Parking has so far installed its tech at 78 new sites in the UK, also picking up 68 sites following its acquisition of Enterprise Parking Solutions. 

Australia and New Zealand, meanwhile, hold a smaller share for the Pacific operations at 42 sites total. 

The company is targeting a total of 1,500 installations by June 2025, with a goal for 200 per annum in the next three years.

Currently, Smart Parking is seeking to penetrate the European market. Its first target: Germany, a country with a total addressable market considered twice the size of the UK. 

Two locations in the EU are already live and generating revenue. 

Smart Parking's three month charts with overlying Information Tech index performance (XIJ)
Smart Parking's three month charts with overlying Information Tech index performance (XIJ)

 

Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

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