SKS Technologies upgrades FY24 revenue forecast to $130m amid project wins

A strong run of recent success in concert with an ever-growing project pipeline has led SKS Technologies (ASX: SKS) to forecast a major increase in annual revenue.

The advanced electrical technology solutions provider has told shareholders it expects total annual revenue for FY24 to be approximately $130 million, up from the $120m forecast previously provided to the market.

The anticipated increase is based on a continually accelerating level of work on hand, boosted by a number of significant contract wins over recent months and weeks, as well as the general health of the business and its ability to fund a substantial level of further growth with its recently increased bank facilities.

Significant successes

Recent successes include the award of a $13.5m early works contract for a new data centre and $11m worth of defence contracts in May and a contract win of more than $30m in November 2023 for new data centre works.

These recent successes have helped the company increase its working capital to $1.7m, up from $0.1 million a year ago and minus $0.5m in FY 2022.

SKS says the pipeline of opportunities for new work shows no sign of abating.

Defence work

The company said the recent landing of defence contracts is a sign of the growth opportunities open to it.

SKS pointed to the $3.8 billion government budget commitment to northern bases alone as an indication that the sector is a prime growth target.

The company’s assessments have also confirmed that Australia is an attractive location for international data centre investment due to its high level of technological advancement and stable political and regulatory environment, with an emphasis on data privacy and security.

Strong pipeline

After $18b worth of data centre investment announcements were revealed in 2023, the company’s development pipeline exceeds 2.8 gigawatts.

SKS also told shareholders that the large amount of work under tender in data centres reflects the opportunity to take advantage of a sector where it has quickly built a reputation for excellence.

The company has also identified the major government focus and investment in renewable energy sources as another area of potential growth.