REG - Aurrigo Int PLC - Contract Win, Notice of Results and Trading Update

Aurrigo InternationalAnnouncement

14/05/2024 07:00

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RNS Number : 2574O  Aurrigo International PLC  14 May 2024

14 May 2024

 

Aurrigo International plc

 

Contract agreed for fleet of four autonomous baggage handling vehicles at
Singapore Changi Airport for SGD $4.2m (~£2.5m), notice of results and
trading update

 

Aurrigo International plc (AIM: AURR, the "Company" or "Aurrigo"), a leading
international provider of smart airside solutions, has signed a SGD $4.2m
(~£2.5m) agreement with Singapore Changi Airport Group (CAG) that will see a
'fleet' of automated baggage handling vehicles piloted for underwing
operations during 2024 and 2025.

 

This follows the successful completion of Phase 2a which tested the Company's
Auto-DollyTug® at Changi Airport, showcasing its resilience in challenging
conditions including wet weather, heat, humidity, alignment to airport
equipment, automated transfer of baggage containers and close quarter
operations to aircraft on stand.

 

This latest contract, Phase 2b, will focus on using four Auto-DollyTugs to
trial fleet communication through Aurrigo's Auto-Connect® platform, enabling
them to be scheduled and monitored to support the turnaround of a widebody
flight.

 

It is expected that these new generation airport baggage handling vehicles,
designed, engineered and built by Aurrigo in the UK, will begin arriving in
Singapore from July 2024.

 

Professor David Keene, Chief Executive Officer at Aurrigo, commented: "This is
a milestone moment for the aviation sector and paves the way for the future
adoption of our Auto-DollyTug for the servicing of live flights in the near
term. Changi Airport Group has been exploring this technology with us since
2020 and the results of significant testing through extreme weather conditions
has given them the confidence to place this contract with us."

 

Ms Poh Li San, Senior Vice President, Terminal 5 Specialised Systems at Changi
Airport Group, said: "We look forward to trialling the fleet of four
Auto-DollyTugs in Phase 2b and to validate our new concept of operations to
support the turnaround of a widebody flight."

 

Notice of Results for the year ended 31 December 2023 and Trading Update
 
The audited results for the year ended 31 December 2023 will be announced at the end of May and will be in line with market expectations*.
 

Additional customer requirements for vehicle capability and the resulting
testing that occurred during Phase 2a have been completed and incorporated
into Auto-DollyTug deliveries for FY24. The design upgrades in Phase 2a have
resulted in the Phase 2b period now extending beyond the end of the current
financial year and into FY25. As a result, some of the revenues anticipated
from Phase 2b in FY24 will now be recognised in Q1 FY25.

 

Notwithstanding this, the Directors are confident that the Aviation Division
should deliver at least £3m of revenues in FY24, together with a further
minimum of £6m from the Automotive Division*.

 

Although Phase 2a has taken longer to complete, the Auto-DollyTug now has
significant feature enhancements and the contract award for Phase 2b is
recognition and confirmation of that fact. The vehicle can now perform tasks
which current ground handling vehicles are not able to achieve. These
advancements unlock operational and financial benefits of a complete
end-to-end autonomous baggage handling solution for our customers.

 

The requirement to autonomously navigate to a baggage loader at the cargo
doors of the aircraft and to operate with more agility in the baggage hall has
resulted in the need for the Auto-DollyTug to have sideways drive motion and
full 360° rotation capability. Additionally, the vehicle now has the
capability of autonomously loading or unloading a baggage/cargo container from
either the right or the left-hand side adding to its flexibility of
operations.

 

Auto-DollyTug can also now operate in heavy rain following the development of
Aurrigo's software-based 'rain filtering algorithm'. During testing the
vehicle surpassed the requirement set by Changi Airport with the full
autonomous operational level now being achieved at 50mm/hr.

 

New customer wins in FY23 and FY24 to date indicate that the Company remains
ambitious to grow the Aviation Division. In addition to Changi Phase 2b
contract, the Company is in various stages of discussions with existing and
potential new airport customers internationally with a view to crystalising
and accelerating commercial traction with Aurrigo's smart aviation solutions.

 

*Market expectations for FY23 are for total revenues of £6.5m and EBITDA
£(3.8)m and for FY24, prior to this announcement were for total revenues of
£11.7m and EBITDA £(2.0)m.

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No.
596/2014. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.

Enquires

 

 Aurrigo International plc                                                 +44 (0)2476 635818

 David Keene, Chief Executive Officer Ian Grubb, Chief Financial Officer
 Singer Capital Markets (Nominated Adviser and Sole Broker)                +44 (0)20 7496 3000

 Phil Davies, Rick Thompson, Alaina Wong, Jalini Kalaravy
 Cucumber PR                                                               +44 (0)78 1260 0271

 Russ Cockburn

 

About Aurrigo International plc

 

Aurrigo International plc is a leading international provider of smart airside
solutions.

 

Headquartered in Coventry in the UK, it designs, engineers, manufactures and
supplies automated vehicles to the aviation industry for use in airside
operations.

 

It is highly regarded as a specialist in automated technology for the
aviation, ground handling and cargo industries.

 

Aurrigo has developed technology and vehicles which can be utilised to reduce
costs, resolve operational issues, increase safety, tackle labour shortages,
whilst also improving sustainability.

 

For more information, see www.aurrigo.com (http://www.aurrigo.com/)

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