SKS Technologies (ASX: SKS) is set for a strong FY21/22 following its acquisition of APEC Technologies and a profitable June quarter. The acquisition has exceeded revenue expectations and laid a solid foundation for growth. As a provider of audio-visual and IT solutions, SKS has capitalized on the increased demand for integrated systems driven by the COVID-19 pandemic.
During the June quarter, SKS reported a positive cash performance of $740,000, a notable turnaround from a $1.21 million loss in the previous quarter. This improvement was fueled by a 44% increase in cash receipts, which reached $10.92 million. Although operating costs rose, including higher staff expenses and fit-out costs for new premises, SKS’s cash at bank increased to $110,000.
The full revenue impact of the APEC acquisition is anticipated to be realized over time, with current work on hand exceeding $26 million. CEO Matthew Jinks highlighted that the acquisition has been beneficial and will drive future growth. SKS is also looking to expand into the managed AV and IT solutions market, aiming to leverage its expertise to establish a robust recurring revenue model.
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