Aurrigo shares jump as it inks autonomous baggage handling deal with BA-owner
Autonomous vehicle specialist () has signed a partnership with British Airways owner () to demonstrate and deploy its cargo handling solution in the UK.
The £0.25m project will be structured similarly to its ongoing contract with Changi Airport in Singapore, consisting of an evaluation and simulation phase starting in October, followed by a demonstration phase and initial deployment four months later.
Aurrigo said it expects this to be followed by the deployment of a small fleet in the first half of 2025, which will include its autonomous Auto-DollyTug baggage vehicle, the Auto-Cargo air-freight vehicle and Aurrigo's Auto-Sim aviation operations simulation software.
The deal follows the announcement of a slew of deals in September, including collaboration with logistics group UPS to pilot Auto-Cargo at East Midlands Airport for driverless transportation of heavy cargo between aircraft. The project received £482k in grant funding from Innovate UK and the Centre for Connected and Autonomous Vehicles and will run over a 14-month period.
The company also received grant funding from the European Institute of Innovation and Technology to test its Auto-Shuttle autonomous passenger transport vehicle in Prague, Brno, and Milton Keynes as part of the Living Lab for Autonomous Public Transport Project, designed to reduce emissions and improve road safety.
Broker Singer said it had left its forecasts unchanged on the back of the IAG deal, given the existing expectation that further partnerships would be signed as results from Changi Airport attract interest in Aurrigo’s technology.
However, it had previously upgraded forecasts for 2024 and 2025 in anticipation of the launch of the latest version of Auto-Dolly, with revenues expected to climb 92% in 2023 to £10.2m, climbing to £26.5m the year after when the company is expected to deliver maiden pre-tax profits of £3.65m.
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Aurrigo’s recent deals demonstrate a clear pick up in commercial momentum since its IPO last September, with blue-chip partnerships validating the quality of its solutions and suggesting it’s in pole position to significantly disrupt the $32bn ground and cargo handling market, which is set to double by 2029.
Autonomous vehicles offer numerous benefits for airports, enhancing operational efficiency by streamlining baggage handling, cargo transport, and passenger shuttle services. These vehicles are precise, reliable, and can operate 24/7, reducing delays and improving overall airport productivity. Additionally, they contribute to a safer and more eco-friendly airport environment.
The company continues to scale, increasing headcount to 97 at the end of H1 in June from 70 at the last year end, and with Ebitda breakeven in sight and £2.8m of cash in the bank has enough runway to become self-financing.
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