Technology design and development growth company Synertec Corporation Ltd (ASX:SOP) has released its annual report and financial results for the year ended June 30, 2023, with the result headlined by a 29% jump in revenue to $15.6 million.
Other FY23 highlights were the company’s Powerhouse technology securing its first commercial order and its engineering business returning to growth with multiple contracts signed.
Synertec ended the year with $10.7 million in cash on hand, providing the $86 million capped company with a strong foundation for strategic growth.
Powerhouse technology commercialised
FY23 saw the commercialisation of the company’s Powerhouse technology, a Predictive Intelligence solar and battery system providing reliable continuous 100% renewable base load power for remote locations.
Synertec’s milestone first commercial Powerhouse order was made by energy giant Santos, while the parties will continue to work together towards a commercial roll-out of Powerhouse.
The company says it is also progressing further interest and opportunities with various large Australian and global companies for the application of Powerhouse across the energy, resources and other sectors.
Synertec managing director Michael Carroll said: “The commercialisation of Powerhouse was a significant achievement for the company in FY23 and a milestone that reflects both the exceptionally robust operational performance of Powerhouse and the dedication and hard work of our highly skilled teams across both Engineering and Technology which have worked together to fully develop, commercialise and maintain the system.
“The Powerhouse technology, which has a large target market of domestic and international remote sites requiring reliable and continuous baseload 100% renewable power, provides a significant growth opportunity for Synertec."
Engineering business returns to profit
The 2023 financial year saw Synertec’s engineering business continue to grow and secure new contracts, providing a solid platform for growth.
The engineering business generated $14.6 million in external revenue and has returned to a self-sustaining, profitable business delivering earnings of $1.3 million (normalised EBITDA), up from a $200,000 loss the prior year.
The company secured approximately $25 million in new contract awards and contract extensions with a range of tier-one counterparties.
These include a $10 million-plus award to support Melbourne Water project work; a $3 million-plus award for upgrades to the Melbourne underground rail loops; $1 million award for the upgrade of a Thales facility which produces advanced energetic materials to the Australian Defence Force; and other engineering services to improve gas supply infrastructure with APA Group (ASX:APA) and Woodside Energy.
Carroll said: “Our Engineering business continued to prosper through the period, almost doubling revenue and workforce on FY21 as the business continues to recover strongly from the impacts of COVID and demonstrating its financial self-sustainability with a normalised EBITDA of $1.3 million and positive operating cash flows of $1.5 million for the year.
"With a number of new contracts secured during the year, the Engineering business has solid work in hand and a large pipeline of work that should continue to underpin growth.
“A strong balance sheet, tangible growth opportunities and the natural synergies between our Technology and Engineering businesses, positions Synertec to deliver further growth.”