SRJ Technologies Group PLC (ASX:SRJ) is on track to smash its 2022 earnings records after securing A$1.8 million in revenue year-to-date, with seven more months still on the horizon.
The specialised engineering services and containment management solutions provider recorded its strongest-ever sales for a reporting period, with orders for the second quarter exceeding A$1.3 million in just two months.
This achievement outpaces the full-year revenue of A$1.7 million for 2022.
New income stream
In addition to the record-breaking performance, SRJ has signed a deal with EFTECH worth a cumulative A$1.1 million. This includes the PTTEP order announced at the beginning of this month.
It has also forged a new relationship with Trident BMC LLC, securing an initial purchase order valued at A$164,000 for its BoltEx flange clamp.
In the midst of these larger orders, the company continues to secure various other smaller contracts during the quarter.
Production of additional BoltEx inventory is underway to service both new and existing opportunities, with surplus capacity to handle expected larger sales volumes.
“SRJ continues to experience an increased demand for the purchase and rental of its range of BoltEx flange clamps,” SRJ chief executive officer Alex Wood said.
“Having signed up our first exclusive license agreement, we are now looking to replicate that in other key territories.”
Financial improvements
The company's cash position has also improved, with the collection of A$191,000 in outstanding invoices. Further settlements are expected before the quarter's end.
In a company-wide push to bolster profitability, SRJ has further restructured its fixed costs to reduce operating costs by A$1 million per annum, which includes the A$605,000 reported in January.
“The secured revenues of A$1.8 million YTD and cost efficiency savings of A$1 million set a solid foundation in our drive towards profitability," Wood said.
“Our business development team continues to identify further revenue-generating opportunities and we remain focused on making further cost efficiencies wherever possible, whilst ensuring it does not impact our commercial offering,” he added.