SKS Technologies Group Ltd (ASX:SKS) will push its expected revenue for the 2025 fiscal year to more than $220 million through the awarding of a $20 million contract from Built Australia to add extension works to a hyperscale data centre in Melbourne for which it had already secured a contract.
SKS announced back in July that it had secured a $90 million contract to build the data centre, which is located in Melbourne’s western suburbs.
The extension relates to all aspects of fit out for the centre, including electrical fit out of office and administration areas, installation and testing of equipment, whip cabling work to connect the main power supply to electrical equipment, and all work related to submains, cable support systems and general power and communication cabling.
The company said the awarding of this project was indicative of its desire to gain a name in the profitable data centre market in Australia – with the development of such infrastructure set to reach a value of $7.7 billion by 2029, and SKS has already secured a total of $170 million in combined work in this sector since FY22.
Chief Executive Officer, Matthew Jinks, said the company was seeking to continue building its profile in this space.
“In a relatively short time, SKS Technologies has won and delivered a number of large data centre project works, generating a reputation as a preferred supplier of electrical and communications solutions to the major companies developing data centre infrastructure in Australia,” he said.
“While the business achieved an exceptional operational performance and record financial results in FY24, the Board and management remain focused on the excellent execution of every project, be it large or small, consolidating the operating framework to appropriately support the new levels of contract wins and delivery.
“With the exemplary FY24 financial results, the Board remains comfortable that the current
working capital position can continue to support the current activity of the business.”
Shares in SKS have risen on the news, and at 11:30 AEST, they were trading at $1.50 – a rise of 7.94% since the market opened.