- Delta Drone International’s consolidated revenue for the first half of 2021 was MAU$ 2.49 million ($1.6 million), up +53.3%,
- Geographical expansion continues, with the signing of new contracts in Namibia and Zambia,
- The range of services is completed: solution based on Lidar technology, security solution and development of the training center in South Africa,
- The definitive signing of the acquisition of Arvista Pty Ltd, a company based in Perth (Western Australia), will make it possible to duplicate Rocketmine’s business model in Australia.
- Delta Drone has strengthened its stake in its subsidiary and now holds 53.1% of the capital.
Delta Drone International, an Australian subsidiary listed on the SYDNEY ASX Stock Exchange (ASX :DLT), has successively issued two press releases, the first dated August 31, 2021 relating to its accounts for Q1 2021, the second dated 1 September 2021 announcing the definitive signing of the takeover of the Australian company Arvista Pty Ltd (these two press releases are available on the website www.dlti.com.au).
Half-year accounts and overview of activity
The press release published on 31 August on the Sydney ASX market presents in detail all the key points to remember, both in terms of quantified performance and business development.
Operating income corresponds to a loss of MAU$ 1.49 (€0.9 million), which is mainly due to holding costs on the one hand, the operating loss at the level of the Israeli subsidiary Parazero.
On the other hand, the activity in Southern Africa, in particular Rocketmine, is profitable.
Regarding holding costs, it is clear that the period of construction of the group and its still modest size do not allow to fully absorb them. Nevertheless, they are necessary to anticipate future development, including the emergence of a solid base in the Australian market.
The Israeli subsidiary Parazero, about 40% of whose sales are made in the United States, has suffered on the one hand from various restrictions related to the health crisis, and on the other hand from the ongoing overhaul of the FAA’s rules on the approval of embedded security systems.
It should be noted that these losses are financed by Delta Drone International’s own cash, thanks to the fundraising of 5 MAU$ (€3.1 million) carried out last December. At June 30, 2021, the cash position was positive at MAU$2.95 ($1.8 million).
Acquisition of Arvista Pty Ltd
The press release issued on 1 September in the Sydney ASX market details all the key points to remember about the transaction. This was also the subject of a previous press release published by Delta Drone on August 16.
For the Group, as part of its overall development strategy, this first external growth operation is a major growth step in a key area:
- It makes it possible to acquire a team of experts, benefiting from an existing activity with a clientele of major Australian mining groups,
- It marks the first stage of a local physical presence, more particularly located in the alien state (Western Australia) which concentrates the highest density of mining sites in the country.
Operation Arvista is finally quite similar to the one successfully carried out in 2017 in South Africa: for the record, Delta Drone had taken control of the Rocketmine company at the time, which offered it a solid development base in southern Africa.
Under the direction and leadership of Chris Clark, General Manager since the beginning of the company, Rocketmine has grown strongly in a few years: its turnover has multiplied by 4, its result has become profitable and its activities have gradually expanded to other African countries, in addition to South Africa: Ghana, Namibia, Zambia. At the same time, thanks to the partnership with the University of Pretoria, a training and demonstration centre will become a major centre of attraction to increase the group’s audience in the area.
Since March 2021, Chris Clark, while continuing to oversee the Group’s African activities, has been physically based in Australia, with the mission of experiencing the same successes in Australia.
Chris was of course the linchpin of Operation Arvista.