Synertec Corporation Ltd (ASX:SOP) achieved strong business growth during the fourth quarter of the 2024 financial year, advancing its Powerhouse technology and engineering offerings.
Unaudited group revenue for the fourth quarter came in at between $5 million and $5.4 million, up 7% on the previous quarter and 11% in the second half of the FY compared to the first.
For the FY24, SOP achieved group revenue of between $19 million and $19.5 million, a sizable 23% increase from the FY23.
Looking back, the numbers are even more impressive when compared to the company’s numbers in FY21, increasing revenue 129% in three years.
Enhancing capability
“During the quarter, we completed two second-generation Powerhouse assets on time and on budget,” Synertec managing director Michael Carroll said.
“These systems are considerably more advanced in remote monitoring and controls, as well as automated response capability to adverse events.
“In addition, with feedback from potential customers, we developed new capabilities to support vulnerable and unstable electrical grids.
“The new solution significantly expands the market application of Powerhouse.
“Our team are also well advanced in achieving approved contractor certification with Santos, which will allow Synertec to be self-sufficient in commissioning Powerhouse units on site from Q1 FY25.
“The engineering business continues to grow profitably in our target segments and technical areas.
“Together with the expected increase in recurring revenue from Powerhouse system rollouts with new and existing customers, the company is in a strong position.
“With sufficient capital to deliver the strategic priorities, the company will remain disciplined and considered in applying our capital for the deployment of Powerhouse systems, as the company moves towards profitability in FY25.”
Strong sales potential
Synertec has a strong pipeline of potential sales for its Powerhouse units, is in active discussions with 15 customers for 68 units and in early discussions with four other customers for a further 19 powerhouses.
There is also massive potential for future growth, with three of SOP’s sales discussion partners representing more than 500 potential sites for Powerhouse unit deployment.
In the engineering sector, Synertec continued to deliver profitable and cash-positive growth with services to clients such as Jemena, GrainCorp and several water utility and major contractor clients.
SOP says it has sufficient funding to pursue its strategic priorities with ready access to about $21 million in capital, consisting of a $15 million debt facility and $7 million from a recent share placement.