Synertec Corporation Ltd (ASX:SOP) made great strides in commercialising its Powerhouse energy storage units, increasing revenue for the product 68% year-on-year (YoY) and 187% between the third quarter of FY2024 and the first quarter of FY2025.
The zero-emission, industrial micro-grid system achieved greater than 99.9% reliability over the last two years of operational testing, with zero maintenance callouts.
Synertec’s engineering business has also enjoyed growth, with revenue lifting 11% YoY to $21.2 million, supported by long-term contracts with blue-chip industrial customers and government utilities.
Engineering business foundational
“The engineering business not only provides a stable financial base for our group but also acts as an incubator for our technological innovations,” Synertec chair Dennis Lin said in an annual general meeting address.
“Our team continues to excel in providing pioneering engineering and technology services across our target sectors.
“We have strategically focused on industry sectors that are resilient to downturns and offer excellent margins.
“This allows us to leverage our expertise across a broad range of projects, fostering growth and enhancing our market presence.
“Our ability to consistently deliver high-quality, reliable solutions has established Synertec as a trusted partner.”
The company also made several board changes, bringing on Johannes Risseeuw as a non-executive director and chair-elect and David Harris stepping down from several board positions to focus on Powerhouse commercialisation as head of technology solutions.
Capital restructure supports commercialisation
Synertec transformed its capital structure during FY24, securing a $15 million debt facility with Altor Capital and a share placement of $7 million.
The funds will directly support the future rollout of Powerhouse technology and any further development for alternate applications including Grid Support applications, and working capital requirements.
“As we look ahead to FY25, we see significant growth opportunities for Synertec, particularly in the deployment of our Powerhouse technology,” Lin concluded.
“The demand for reliable, continuous, affordable, and sustainable baseload power in remote locations positions us well for future success.”