IkeGPS wins contract with large US electric utility

IkeGPS designs and monitors power pole infrastructure. Photo / Supplied

Shares in precision measuring software firm IkeGPS Group jumped 25 per cent on news of a significant new commercial relationship with a major US-based utilities company.

The company has signed a deal with a Fortune 100 energy business to use Ike's system for assessing and designing power pole infrastructure.

The deal is initially expected to generate about $750,000 for Ike's 2021 reporting period and follows a successful pilot programme, the company said in a statement to the NZX without naming the customer.

The initial commitment involves a "small subset" of 250,000 of the company's approximately 10 million power poles.

"Significantly, this is the first major cross-sell from Ike's Pole Foreman acquisition that was completed October 2019," the company said.

Ike posted operating revenue of $9.8 million in the year to March 31 and reported an operating loss of $5.6m.

The stock climbed 23c, or 25.56 per cent to $1.13 by mid-afternoon following the announcement.

In late July the company raised almost $20m of equity from an institutional placement of
around 14 million shares, worth $9.8m, at 68 cents per share - a 12 per cent discount to the then 5-day volume-weighted average price on the NZX.

Existing shareholders were also able to acquire one share, also at 68 cents, for every seven they currently hold. That will raise a further $9.9m and bring the total to $19.7m.

IkeGPS, which was founded in Wellington but is now headquartered in Colorado, builds laser-based field tools and mobile software apps to help electric and communication companies measure lines, poles and structures.