The A2B Australia Ltd (ASX: A2B) share price has risen by 1.89% at the time of writing. A2B was previously known as Cabcharge and is a leading provider of mobile payment processing technology and consulting, specifically to the taxi and limousine industries in Australia and internationally. In addition, the company provides taxi services and despatch management services.
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What's moving the A2B share price?
The A2B share price is on the move after the company announced a new partnership with Transport for NSW to provide a smartcard solution for the NSW Taxi Transport Subsidy Scheme (TTSS). The TTSS supports the mobility of 41,500 NSW residents who have a qualifying severe and permanent disability. The scheme is integral in supporting the independence of its members and their participation in the life of their communities.
A2B has been appointed to deliver a smartcard solution to replace the paper docket payment system currently in use. Consequently, A2B's payment and data services will bring the TTSS into the digital age.
The solution will provide new and useful insights through data, enabling Transport for NSW to better serve TTSS participants, an aspect of the partnership that A2B highlights as being particularly exciting.
Management commentary
Commenting on the new partnership, A2B CEO Andrew Skelton said:
Our team is happiest when the technologies we build are leveraged to provide accessible, dependable and equitable transport. The efficiencies and data insights that A2B's technologies provide will enable Transport for NSW to continuously improve the TTSS for the benefit of communities throughout NSW… This partnership with A2B brings world class technology and data to the Taxi Industry component of the transport mix, and it's an added bonus that the technology is being provided by an Australian payments company headquartered in Sydney.
The A2B share price
The A2B share price is currently trading up 1.89% on the back of this announcement, yet remains down by approximately 47% in year to date trading. This values the company at $97.55 million with a trailing 12-month dividend yield of 9.88%. After payment of its H1 FY20 dividend, A2B has a total liquidity position of ~$74 million. This includes $24.2 million of free cash.
