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Synertec (ASX:SOP) - Managing Director, Michael Carroll
Managing Director, Michael Carroll
Sourced: Finance News Network
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  • Engineering services company Synertec (SOP) has reported positive results from its COVID-19 response and ongoing operations
  • The company has smoothly transitioned to a fully remote workforce and established a secure workflow from critical infrastructure clients
  • Synertec is implementing a number of corporate initiatives, which are improving the company’s liquidity and capital reserves
  • Despite current economic conditions, the company has recently won several contract extensions and new contract awards, in excess of $1 million
  • Synertec shares remain unchanged at market close, trading for 2.2 cents per share

Engineering services company Synertec (SOP) has reported positive results from its COVID-19 response and ongoing operations.

Like countless others, the company reacted to COVID-19 by implementing various health and safety measures. However, Synertec also benefitted from a decision it made earlier in the 2020 financial year, to strengthen its IT systems. This choice allowed the company to adapt to the rapidly evolving business environment, which is highly reliant on technology.

Synertec has transitioned smoothly to a fully remote workforce, and established a secure workflow from critical clients. These include customers whose operations must not be disrupted by COVID-19, like essential water and energy infrastructure.

The company is also working to implement a number of corporate initiatives, which are improving its liquidity and capital reserves. 

This included a review of Synertec’s operations and governance processes by the company’s bankers. The ensuing negotiations resulted in $1.5 million in cash being returned to Synertec’s operating cash balance. The money was previously held as security.

The company has applied this to working capital, investment in the its growth strategy, and protection of its workforce and IP.

Synertec has also renegotiated its tenancy agreements, to reduce the expenses around occupancy. Finally, the company has engaged with Governments to determine its eligibility for business support programs.

Synertic is already debt-free, has no reporting covenants, and has access to a bank guarantee facility. This strong financial position will soon be bolstered by the new business activity in the company’s future.

Synertec has recently won several new extensions on existing contracts, as well as new contract awards. The new contracts come from the company’s target sectors of critical infrastructure, pharmaceuticals, and energy. The contract extensions and new awards have a combined value of over $1 million.

Synertec’s Managing Director, Michael Carroll, explained the company’s new business activity.

“The company’s response to the changing market conditions, and agility in the way we are working with our clients, is translating to an increase in tendering and activity levels. 

“Synertec’s long-standing reputation as an expert in mitigating risks to people, assets, business, and the environment is driving existing and potential clients to request Synertec’s assistance with the likes of biopharmaceutical facility design, conceptual thinking, and hazardous area and functional safety consulting,” he said. 

Synertec shares remain unchanged at market close, trading for 2.2 cents per share.

SOP by the numbers
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