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- Significant contract awarded by major retailing group.
- Pipeline of work currently under tender up to $1.25 billion.
- Pipeline for data centre work has increased by almost four times.
- Approved for further $20 million in bank guarantee facility to fund growth.
SKS Technologies Group (ASX:SKS) has this week received written confirmation from Buildcorp Group for a $22 million contract to supply and install a fully integrated electrical technology solution for a major retailing group for its new headquarters in Melbourne’s Docklands precinct.
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On the same day, the Australian company received approval from CBA for a further $20 million in its bank guarantee facility.
“The awarding of this project reflects our reputation and position in the market for quality and capability, reinforcing our business as a trusted partner for complex, large-scale commercial developments,” CEO Matthew Jinks said.
“It also further strengthens market confidence in our team’s ability to execute critical infrastructure with precision, safety and efficiency.
“Boosting our traditional work on hand, the project validates our continued focus on securing work in non-data centre sectors and advances our strategy to build relationships with end-user clients.”
The project scope includes the provision of a complete electrical ecosystem, from core electrical infrastructure and distribution systems to advanced lighting, communications and IT, and smart building system integration. The project is due for completion in Q1 CY28.
SKS’s business order book now sits at $355M, of which ~$270M of work extends beyond the traditional 12-month horizon into late CY27.
Since February, the pipeline of work under tender has increased by almost 120% from $572.26M to $1.25 billion. Data centre tenders comprise just over $1B of the total pipeline compared with $423.56M in February.
Since May CY25, the pipeline for data centre work has increased by almost four times from $270.28M to $1.02B, underpinning the quantum growth in the business’s operational expansion and strong financial performance.
Meanwhile, the company’s CBA bank guarantee facility now sits at $48M, while bank facilities, including the equipment financing facility, now total $52M
“In the three and three-quarters years since we first secured our bank facilities, we have secured at least one material increase each calendar year to strengthen the necessary liquidity to support a rapidly expanding order book,” Mr Jinks said.
“These continual funding increases have given us the capacity to execute confidently, invest in delivery capability and manage working capital through growth cycles.
“I believe that we have capitalised on these opportunities by continuing to make judicious capital allocation decisions, maintaining a disciplined cost approach and focusing on converting the pipeline to the order book, and the order book to revenue.”
SKS is up +4.92%, to $7.89. Mkt cap $867.2M.
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