SRJ Secures £695k North Sea Contract Amid Leadership Overhaul and Strategic Review

Challenging Quarter Amid Sector Headwinds

SRJ Technologies Group Plc has reported a challenging first quarter for FY25, with cash receipts falling 47% to £330k (A$682k) compared to the previous quarter. This decline reflects cautious capital spending and deferred procurement decisions across the global energy sector, which have slowed sales momentum. Despite these headwinds, the company’s sales pipeline remains robust, supported by ongoing client engagement and new contract awards.

Key Contract Wins and Expanding Footprint

Notably, SRJ secured a £695k (A$1.45m) ACE365 campaign post-quarter for a global oil and gas supermajor in the North Sea, involving year-round robotic inspections aligned with the UNEP Oil & Gas Methane Partnership 2.0 emissions standards. This contract not only underscores SRJ’s technological edge but also positions ACE as a commercial innovator in robotic inspection services. Additional contracts include a £160k (A$333k) consulting extension with a global FPSO operator, and ongoing negotiations for further inspection campaigns in South America, the Mediterranean, and the Far East.

Strategic Leadership Transition and Growth Review

The quarter also marked a significant leadership transition, with incoming CEO Kurt Reeves and Chair George Gourlay spearheading a comprehensive strategic review. Early findings emphasize the need to stabilise cash flows by increasing recurring revenue streams and reducing reliance on long sales cycles typical of project-based work. The updated corporate roadmap, expected in Q2 FY25, aims to reposition SRJ as a leading embedded asset maintenance partner across energy, petrochemical, and industrial sectors.

Global Partnerships and Technology Innovation

SRJ is advancing exclusive partnerships to accelerate BoltEx adoption in key regions including the US, Saudi Arabia, and Indonesia, leveraging strategic inventory placements and revenue-sharing models to build recurring income. Meanwhile, field-testing is underway on a new technology designed to address a significant, previously unsolved challenge in oil and gas asset integrity. This innovation, born from direct client collaboration, highlights SRJ’s commitment to engineering solutions that meet evolving industry demands.

Financial Position and Outlook

While cash outflows from operating activities decreased 15% to £348k (A$719k), SRJ is actively managing liquidity through invoice factoring and discounting facilities, with a £250k invoice discounting facility expected to be secured shortly. The company is also exploring in-country manufacturing to mitigate supply chain disruptions and tariff impacts, particularly in the US market. With several major contract negotiations in final stages across multiple continents, SRJ anticipates revenue growth and improved cash flow in the coming quarters.