SRJ Technologies Surges with 178% Cash Boost and Strategic Middle East Expansion

Strong Financial Momentum Amid Operational Integration

SRJ Technologies Group Plc (ASX: SRJ) closed out 2024 with a significant financial uplift, reporting cash receipts of £623,000 (A$1.26 million) in the December quarter, a 178% increase from the previous quarter. This surge reflects growing commercial traction following the integration of Air Control Entech (ACE) into SRJ’s operations, alongside strategic leadership changes designed to accelerate growth.

While the company acknowledges that delays in contract awards have impacted short-term revenue and EBITDA for FY24, management stresses these are timing issues rather than lost opportunities. The sales pipeline remains robust, with active negotiations underway for multiple strategic contracts expected to materialize in FY25.

Expanding Footprint in Oil & Gas Inspection and Robotics

ACE’s innovative ACE365 commercial model, which embeds equipment and manpower within offshore inspection teams to reduce operational expenditure and enhance safety, continues to gain traction. Two additional global oil majors are set to replicate this model in the North Sea during Q2 2025, signaling expanding revenue streams.

Operationally, ACE commenced its first FPSO inspection campaign with SBM Offshore in Guyana in January 2025, marking a milestone despite initial delays. Mobilisation for a similar project with Energean in Israel is scheduled for February 2025, with a total potential contract value of approximately £750,000 (A$1.49 million). Discussions are also advancing for a global rollout of advanced inspection technologies across nine FPSOs spanning 22 countries, reinforcing SRJ’s growing global presence.

Strategic Middle East Market Entry

SRJ has made significant inroads into the Middle East, signing a memorandum of understanding with AYTB, a leading Saudi petrochemical service provider. This partnership aims to facilitate ACE and SRJ’s market entry into Saudi Arabia, focusing on petrochemical plants in Al Jubail. Additional collaborations are underway with major regional players, including International Marine Industries, positioning SRJ to capitalize on the region’s expanding asset integrity and inspection market.

The company is also finalizing trade licenses in the UAE, expected by early February 2025, which will enable pursuit of further revenue opportunities with major oil and gas operators in the Gulf Cooperation Council (GCC) region.

Product Innovation and Industry Endorsements

SRJ’s BoltEx® flange clamp technology continues to gain industry validation, with repeat orders from ExxonMobil and Formosa Plastics Corporation. Notably, ExxonMobil endorsed BoltEx® at its annual technical workshop, enhancing the product’s visibility and adoption potential across multiple global assets.

On the innovation front, ACE completed successful testing of its ATEX Zone 1 Certified Optical Gas Imaging (OGI) UAV, designed to detect methane leaks in hazardous environments. This patent-pending drone positions SRJ at the forefront of the US$14.9 billion oil and gas emissions monitoring market, with a tender award decision expected in February 2025.

Leadership and Financial Discipline

SRJ implemented key leadership transitions during the quarter, appointing George Gourlay as Non-Executive Chair and David Milner as interim CEO, while former CEO Alexander Wood transitioned to a non-executive role. These changes aim to strengthen strategic oversight and operational execution as the company scales.

Financially, SRJ improved cash flow management, reducing operating cash outflows to £411,000 (A$830,000) from £1,003,000 (A$1.94 million) in the prior quarter. The company is actively managing working capital and has introduced invoice discounting facilities to support liquidity. Directors and some management have taken salary reductions since November 2024 to conserve cash, with withheld amounts accrued for future settlement.

Looking ahead, SRJ remains confident that delayed revenues will materialize in FY25, supported by a strong contract pipeline and operational momentum across its core sectors of oil & gas, maritime, and asset integrity management.