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I got 5 good questions today from a longer term investor and thought that I would share my feedback with all of you:

How is the cash flow going? Are there plans to pay down more debt this fiscal or calendar year?

Cannot talk about cash in this forum, but we will obviously be issuing our Appendix 4C with associated commentary in the next few weeks. We expect to remove all debt this calendar year (other than trivial debt).

2.How are sales in general tracking, and particularly the STA7?

STA7 only launched last month so early days. Our reported YTD sales (I think we did this in January) were the best we had ever had, by a substantial margin. I will look to expand on that in the Appendix 4C.

3. Are there any significant changes to the competitive landscape? Do you have some market share numbers on Spectur's main competitors?

We see a lot of competitive, price based, crowding at the bottom end of the building market, which is also contracting. At the top end of the security market, we see the same players with few new additions. We dont see anyone else making a reseller-ready product (other than customer builders/integrators).  In safety and warning, our only competitors are custom integrators, and we do not see them at scale. For our Envirocoms product, there are no obvious competitors that can integrate sensing and camera data in the same open, real time and reporting platform that we have. This is giving us some real advantages in tenders and opportunities where that is valued.

4. Has there been a result for the flood monitoring tender?

There was a result for a recent smaller flood monitoring tender which we lost to a local budget alternative, but we have a number of other opportunities in the flood space that we continue to pursue. It was not a top 10 pursuit.

5. Do you know who provided the Spectur-like devices set up as mobile trailers to the Victorian Police? Do you have any insight into their commercial arrangements? Does Spectur offer an equivalent product? Was it given the opportunity to compete?

We are only pushing into the trailer market now. The trailer component of most systems is the majority of the cost, and we do not make them. Also, they generally provide a lot of extra power over and above what you can get with a pole mounted solution, so our “extra-frugal” power edge was less valuable in this environment. Having said that, with a trusted partner, we have multiple tender bids out now and are exploring more of them. Tendering (overall) is not something we did even 12 months ago. Now it is a very high volume (often 1 per week or more) activity that is only starting to pay dividends. I don’t think we bid the Victorian Police tender – but if you can send me details I can find out a little more.

Some interesting questions from a longer term investor