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ORCODA LIMITED (ODA) - Transforming Transport Logistics: Managing Director Geoff Jamieson on Smart Solutions, Strategic Acquisitions, and Financial Breakthroughs

September 04, 2024 • Andrew Musgrave

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Unlock the secrets behind Orcoda Limited's game-changing technology in our latest episode of ASX Briefs. We sit down with Geoff Jamieson, Managing Director of Orcoda, to explore how his company is transforming transport logistics with cutting-edge smart solutions. Geoff walks us through Orcoda's journey from its name's origin, "organized connected data," to its remarkable impact on the industry, boasting 280 active customers and a 64% surge in annual recurring revenue. You'll gain an insider's perspective on their standout financial performance for FY24, marked by a stunning 396% boost in free cash flow and a 23% rise in total income.

Geoff also dives into the innovative applications of Orcoda’s transport optimization software, which is making waves in sectors such as community transport and agriculture. Learn about the strategic acquisition of Future Fleet and how it’s supercharging Orcoda’s fleet management capabilities. With proprietary algorithms and a focus on digital transformation, Orcoda is poised for even greater success in FY25. Don’t miss this chance to glean invaluable insights from a leader at the forefront of smart transport management.

Andrew Musgrave:

Welcome to another episode of ASX Briefs, and joining me today is Geoff Jamieson, the Managing Director of Orcoda Limited, a company that's at the forefront of providing integrated smart technology solutions across transport logistics, workforce logistics and transport infrastructure. Geoff, thanks for joining me today and welcome to the podcast.

Geoff Jamieson:

Thank you and looking forward to giving your listeners a quick snapshot of Orcoda.

Andrew Musgrave:

Excellent. Well, that's a great place to start. So if you can just give us an overview of actually who Orcoda are and their core business areas.

Geoff Jamieson:

Yes, so Orcoda originated, the name originated from organized connected data, so the O-R-C-O-N-D-A and that is where the name Orcoda came from. That's exactly what we do we organise connected data. Out there, there's lots of different databases that don't talk to each other very hard for companies and management teams to make decisions, so our technology platforms are all about bringing all of that data together so companies can make informed decisions in their transport operations, in which we specialise in. Our mission is to optimise and enhance compliance of our customers' transport operations and supporting their digital transformation, which is a really big thing now, as lots of companies are wanting to digitally transform. We integrate the transport optimisation through our SaaS platforms, in-vehicle fleet management solutions and our contracting services, and our vision is to be a leading provider of intelligent transport management systems and seamless, ai-driven smart city solutions into the future. We've currently got 280 active customers, 7,000 vehicles using our technologies, 3.1 million in annual transport movements technologies, $3.1 million in annual transport movements and $6.4 million in ARR, which is a 64% increase on last year.

Andrew Musgrave:

Okay, and the company has reported strong financial results for FY24, with total income up and strong full-year results. So can you walk us through the key drivers behind this performance and how you plan to maintain this growth trajectory?

Geoff Jamieson:

Great. Yes, our total income for the year is $25.4 million excuse me up 23%. Our EBITDA is $2.5 million, up 24% on last year. Our free cash flow is $1.2 million, up 396% on last year. Our ARR $6.4 million up 64%. Our connected assets $7,000, up as at the 30th of 6-24. And we've optimised. So we have a really very, very good optimiser, best in class, we believe, best in world, and we've done 825,000 optimised trips in FY24. So, all in all, a very, very good year and great results. And our growth is continuing. We're continuing to grow, bring on new customers and FY25 looks like another good growth year.

Andrew Musgrave:

Okay, and your transport technology division has shown significant progress, particularly with the rollout of the Orcoda transport optimisation software system. So can you share more details on the impact of this rollout and the potential market opportunities you're targeting?

Geoff Jamieson:

Sure, yeah, so basically our transport technology, which is mostly SAAS, with very proprietary algorithms and fit for purpose for our customers. Our revenue in that division was 8.5 million. Of that, 6.4 was ARR and our EBITDA margin is 22%. We specialise in community transport, pathology collections, carpooling, food and goods delivery, municipal waste collection, mining, coal chain logistics and agriculture and have built a fantastic client base up in that division and continuing to bring new clients on as we grow.

Andrew Musgrave:

Okay, and the acquisition of Future Fleet has been a strategic move for Orcoda. So how has the integration of Future Fleet's fleet management solutions with your software platform enhanced your service offerings and what future developments can we expect from this integration?

Geoff Jamieson:

Yeah, so Future Fleet was a very, very good fit with our overall integrated smart transport management solution. Future Fleet is specialised in telematics. People do get a little bit mixed up with what telematics does and what our transport management system and our booking system does. So telematics is all of the intellectual property that sits in the vehicle to manage the vehicle, like that's maintenance and driver behaviour, braking, all of those sorts of things within the vehicle itself. That fits very nicely within our technology platform where we've got a booking platform which books people, parcels and goods onto the vehicles and our transport management system that basically manages the schedules and the routing of the vehicle once it's ready to leave and deliver parcels, goods or people, or pick people up and deliver them, pick parcels up, deliver them, pick goods up and deliver them. So there's a very good fit there with Future Fleet.

Geoff Jamieson:

One of the other parts of our process is obviously with Betta Group. That's putting all of the infrastructure required to connect road, rail and air corridors into our technology. Technology that's IoT devices, smart lighting, all of the things that need to be connected to manage transport corridors, and Future Fleet fits nicely within all of that as well, because, Future Fleet, you need to manage that vehicle, to be able to connect everything to it, know where that vehicle is through the telematic systems, and obviously, one of the big areas we've been able to add real value is in cold chain logistics, which is one of the areas that Future Fleet specialises in.

Andrew Musgrave:

And the company has been selected for the Australian Community Transport Association trial, which could potentially lead to a national implementation strategy. So what are your goals for this trial and how does it align with your long-term vision for Orcoda?

Geoff Jamieson:

Yeah. So that's another large growth area for us in community transport. We believe we are best in class. We've probably got one of the best systems and that's been now recognised by ACTA, which is Australian Community Transport Association. ACTA decided with the federal government to do a trial of technologies ready to go and roll out nationally to all of the community transport providers across the country, which I believe there are some 500. So we were appointed by ACTA, along with three other providers, to replace the incumbent that's in there at the moment that the federal government fully fund. That started in July 2024, so it just started. We're delivering all of the results to both ACTA and the federal government at the moment and that trial is going very, very well. We believe at the end of it, once they start the national rollout and they've selected the technology platforms, we will be one or one of two that will be rolled out nationally. So very, very good for Orcoda and our future growth.

Andrew Musgrave:

Okay, and looking ahead with the rapid growth of AI and smart city investments, how does Orcoda position itself against competitors in the smart technology market and what differentiates your offerings in?

Geoff Jamieson:

Yeah, so, like I said, we've got a fully integrated transport management system that is 100% AI driven. We do AI in all of our platforms. Future Fleet Platform's got full AI or coded platforms booking in the transport management system. We've got AI where we do a lot of optimisation and the AI is going to really drive the transport corridors of the future. So we've got R&D programs on the go at the moment within Betta, Orc oda and Future Fleet to build digital twins that will be fully AI driven so that our system will become smarter and smarter as we roll out across customers and transport corridors of the future.

Andrew Musgrave:

Okay, and just to wrap things up, what are some of the key milestones you're hoping to achieve in the next 12 to 18 months that shareholders can look forward to?

Geoff Jamieson:

Obviously that community transport one is a big one for us. Our coal chain logistics is another big one. We're really getting some really good growth there at the moment. The same with our carpooling A lot of local government authorities in Australia and New Zealand are taking them up as we speak and we see that as a very, very good growth area. We're winning some very, very good contracts in the infrastructure space as well and we see a lot further growth there. We've just been awarded a contract with Energy Queensland, or EQ, and we see a lot of growth there in that sector as well, with EQ going forward. So, all in all, great customers, great growth story and we see the company growing in all areas as we move forward.

Andrew Musgrave:

Okay, Geoff. Well, it's been a great update on where the company's at and we look forward to further updates in the upcoming months.

Geoff Jamieson:

Thank you very much.

Andrew Musgrave:

That concludes this episode of ASX Briefs. Don't forget to subscribe and we look forward to catching you on our next episode.