SKS Technologies Wins Defence Contracts Worth ~A$11M

SKS Technologies Group Ltd (ASX: SKS) has secured several major contracts totalling ~A$11 million from the Australian Defence Force (ADF).

The contracts are for a range of electrical and communications infrastructure projects at the ADF’s RAAF Base Tindal in the Northern Territory.

SKS Chief Executive Officer Matthew Jinks said: “The significant investment made during 2022 to capture work in specific new geographical and market sectors continues to confirm its value in accelerating levels of new work in each targeted sector.”

On track to achieve revenue target

Jinks added that since FY22, SKS has won A$28 million of work in the defence sector.

Furthermore, these new contracts increase work on hand to another record level of just above A$100 million.

Jinks said the company remains on track to achieve its stated revenue target of over A$120 million for FY24.

Background

In February 2020, the Federal Government announced a A$1.17 billion upgrade to the RAAF base Tindal.

The upgrade will deliver increased capacity, address issues associated with outmoded facilities and improve operating efficiency.

SKS’s projects comprise a site-wide communications project that involves the supply and installation of communications infrastructure.

This includes optical fibre cable, SCEC communications racks and termination equipment for Lendlease.

Operating cash surplus

SKS reported an operating cash surplus of A$2.94 million for the December quarter, which represented a more than sevenfold increase on the previous quarter.

The strong cash performance has enabled full repayment of the outstanding overdraft amount and a cash balance of A$0.9 million as at 31 December.

The operating cash surplus has been driven by a further significant increase in receipts from customers of 21.1% to A$32.51 million from A$26.83 million in the September quarter.

 

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