Star Energy Share News (STAR)

(Sharecast News) - Remote tracking, monitoring and protection technology provider Starcom updated the market on its recent progress on Thursday, reporting that it had achieved "good" headway across all fronts, cementing what the board called a "strong foundation" for sustainable future growth.
The AIM-traded firm said it had employed a strategy of focusing on the higher end of the market, using its technical strength to address more sophisticated and technically-demanding customer needs, where it saw less competition and higher margins.

It said it had received a new order from an existing customer in Ukraine for $1.3m of 'Helios' units over a three-year period.

An initial down-payment of $0.2m had been received against the first instalment of $0.44m, payable by the customer.

The order was for a new advanced Helios unit, with Bluetooth and CANBUS connection, which would provide direct connectivity with a vehicle's computer to analyse a variety of vehicle and driver behaviour data.

Starcom said the additional Bluetooth module made the Helios the central hub of the vehicle's internet of things (IoT) platform, with the possibility to communicate with other Bluetooth-supported devices and sensors.

The advanced Helios unit was expected to be operational by the end of the first quarter of 2020, the board said.

Looking at its collaboration with Zero Motorcycles, Starcom said it was ongoing and continued to demonstrate its technological advantage.

Zero had stated that it expected an increase in sales of the electric motorcycles in 2020.

Starcom's Helios technology was integrated within the Zero motorcycles to provide performance data to the rider as well as to Zero, and to allow the manufacturer to deliver software upgrades remotely at the correct time.

The company was also continuing the successful implementation of its long-term contract with Israeli conglomerate Israel Chemicals, which was using Starcom's 'Kylos Forever' technology to track and monitor its sensitive cargo as it was shipped in tanks around the world.

As it had previously announced, Swiss International Airlines had also given direct approval for the use of Kylos Air, supplied through Bosch Connected Devices and Solutions under its own brand, on its flights.

The company also launched 'Lokies' in April, with the first product batch reportedly well-received by customers.

Starcom described Lokies as a "revolutionary IoT-based padlock" which could be operated remotely, and did not require a key.

The company said it was running several proof-of-concept schemes with customers globally, which it hoped would lead to sales.

So far, 500 units had been delivered to a Russian client, which had been successfully tested.

The firm said it remained in discussions with the client in respect of potential further orders of Lokies units.

As it had reported earlier in the year, WIMC Solutions - a US-based provider of real-time monitoring services for international shipping containers - placed a large order with the company for its 'Tetis' shipping container tracking device.

The relationship between the two companies had become stronger over the course of the year, Starcom said, and WIMC had recently confirmed that Tetis had been approved by the Paraguayan Department of Customs and Duty.

Finally, due to the increased device connections across the product range, the higher margin recurring revenues from its software-as-a-service were expected to continue to grow.

"We are pleased that the initiatives taken during 2019 are beginning to show positive results and we are creating a firm base from which we expect to further expand the business during 2020 and beyond," said chief executive officer Avi Hartmann.

At 0924 GMT, shares in Starcom were up 7.83% at 1.27p.