Thruvision(THRU) , a provider of walk-through security technology, published its results for the year ended 31 March 2023, with revenue up by nearly a half through repeated orders and the company’s growth in two key markets - Customs and Retail Distribution - bringing a significant step toward profitability in the period.
Revenue jumped 49% to £12.4 million, with a multi-year contract awarded by US Customs and Border Protection and related orders from the same customer delivered accounting for £8.3 million of revenue.
Adjusted gross margin increased by 4.8pp to 51.5%, driven by positive product mix and higher margin software revenue, with statutory gross margin growing 6.2pp to 47.0%, reflecting production efficiencies.
The adjusted EBITDA loss stood at £0.2 million, compared to a loss of £1.7 million in 2022, while the operating loss was £1.0 million (2022: loss £1.9 million).
Cash balance as at 31 March 2023 was £2.8 million with cash at 20 July 2023 of £2.4 million.
The company’s strategic market focus on retail is timely given that employee theft is becoming increasingly problematic for the retail industry, and Thruvision believes that its performance in this market will grow as economic conditions recover. This is compounded by the company’s analysis which showed there are around 20,000 Distribution Centres in UK, US and Europe which could use Thruvision systems.
View from Vox
An overall positive set of results from Thruvision, which has scope to benefit from several drivers, not least employee theft, that will influence its performance in FY24.
Thruvision is rapidly establishing itself as a market leader in security tech, with this particularly salient in its customs division. At some locations in the US, 100% of legal entrants to the US are being screened using Thrusision’s technology. Revenue streams are further solidified with the multi-year agreement with CBP, which will run until September 2026, with further orders expected to be placed to increase contract length.
Across the globe, its technology is deployed in more than 20 countries by government and commercial organisations in a wide range of security situations. Thruvision sets itself apart from competitors by technology being capable of detecting concealed objects in real-time using an advanced AI-based detection algorithm.
The company remains well funded, with £2.4m in the bank, and looking ahead, analysts at Progressive Equity Research estimate this to rise to £2.8m by the end of FY24.
With Thruvision well-positioned in a large and growing market, along with diverse revenue streams, we expect the company to continue along its strong trajectory in FY24.
Follow Thruvision for more News and Updates: