Last time we touched on AD1 Holdings Ltd [ASX:AD1] they were busy revelling in the success of their ‘Art of Mentoring’ platform, showcasing the appeal of a budding HR tech industry.
And while that is still certainly a key focus for AD1, it isn’t their only one.
Management have proved that today with a new, five-year contract for their utilities division. Providing tailored solutions for both billing and operational services to energy retailer Locality Planning Energy.
A deal that is worth $10 million and has sent the AD1 share price climbing 11.54% higher at time of writing.
Catering to the customer
As AD1 notes, this deal is all about providing a better customer experience for the retail energy industry.
And they’re attacking it from two fronts. Creating solutions that they’ve dubbed as ‘Acquire’ and ‘Zone’.
The former — Acquire — is all about sales. Utilising software to build a management tool that ensures customers are getting the best deal possible, and that providers are getting a competitive advantage.
Zone, on the other hand, is all about providing customers with better self-service options. Giving them more freedom to manage their service, as well provide better metrics for providers.
As AD1 CEO, Prashant Chandra, put it:
‘This is a landmark deal for the Company and we are thrilled to extend and expand our partnership with LPE for a further five years.
‘Our utilities SaaS solutions assist energy retailers enhance their value offering and achieve their growth objectives in a very cost-effective manner. The five-year expansion of services is a validation of the value in our commercial offering.’
More importantly, it will also bring in much needed revenue. Providing AD1 with more cash flow to further their growth prospects.
And for shareholders, that is the kind of bottom line result that will bolster their investment.
What’s next for the AD1 share price?
While today’s agreement is a big step in the right direction, it obviously can’t be the last.
If AD1 wants to keep thriving they will need to land more deals, just like this one. Especially if they can use their expertise from this agreement to hone their market offering.
That way, they can stay ahead of the curve, providing software solutions that are ideal for the energy industry.
For now though, at the very least, they’re off to a good start.
Crucially, this is coming at a time when energy is going through massive disruption. Changing the landscape for both providers, retailers, and customers. All of which is upending the market as we know it.
But, for savvy investors, it is a great opportunity to make some serious gains.
If you want to learn more about these changes, and how to potentially benefit from them, check out our latest report. You can get your hands on it, for free, right here.
For Money Morning