Ann: Market Update, page-2

ASX Release 23 March 2018: Australian-based remote security monitoring systems and cloud based technology solutions company (‘Spectur’ or ‘the Company’) (ASX:SP3) is pleased to provide the following market update up for the first 2 months of 3 rd quarter 2018. January/February Total Sales Revenue Unaudited sales revenues for January and February 2018 combined totalled $416,000, which is a 149% increase on sales revenues of the previous year’s comparative period (January and February 2017) of approximately $167,000. As previously disclosed, January and February are traditionally seasonally quieter months yet these figures validate the momentum being built by the Company’s growth strategy and benefits of the East Coast expansion. Growth in Proportion of Rental Units The number of camera units rented is increasing at a faster rate than direct camera unit sales with 59 new rental units deployed in January and February alone. Rental systems generate strong monthly recurring revenues over the rental life of a product in comparison to an outright sale. Rental systems provide the Company with greater returns on investment and higher gross margins. The Company is actively targeting increasing the volume of rentals because of these factors. - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 2017 - Jan to Feb 2018 - Jan to Feb Total Revenue $ Spectur is pleased to announce it has supplied rental HD4 units to a new critical infrastructure customer, who operates through New South Wales and Victoria. The client will initially trial the systems on two sites. This is a result of a concerted effort to increase the number of rental units supplied to Tier 1 companies. Experience has shown that repeat orders follow initial trials which rapidly increase the number of cameras in the field, at a much lower ongoing cost of acquisition. Change of Accounting Policy As a result of rapid growth, Spectur recently conducted an in-depth review of its accounting policies. In particular, the presentation of the Statement of Financial Performance. As a result of the review it is changing its accounting policy to bring it into line with current Australian industry practice. Using a standard costing per unit basis gives the Company an estimated margin for the first quarter of 2018 of between 40-45%


40-45% margin