• Group revenue & other income down 7% to $8.5m
• Net cash of $7.1m with $11.5m facility available
• Powerhouse technology revenue up 137% to $1m

Synertec Corporation Ltd (ASX: SOP) has reported its financial results for the six months ending 31 December 2024 (FY25 H1). The company generated revenue and other income of $8.5 million, down 7% on the prior comparative period (PCP), due to a reduction in fixed price projects. Engineering consultancy services revenue decreased 3% to $6.6 million, while technology revenue from the Powerhouse units increased 137% to $1 million. Despite a cooling of activities in the broader engineering sector, Synertec's engineering business remains more profitable and cash flow positive compared to the PCP. The company has a net cash position of $7.1 million as of 31 December 2024, with $3.5 million drawn from the Altor facility and a further $11.5 million facility available, providing capital flexibility to execute growth initiatives. Synertec has also implemented cost-cutting measures, delivering around $1.1 million in savings during the period and budgeting for $2.5 million in annualized savings. The company continues to progress opportunities in the oil and gas sector, with clients approaching Final Investment Decision (FID) for significant Powerhouse procurement. Synertec has also developed and submitted proposals for adjacent applications of the Powerhouse technology, including an advanced battery control system and community battery applications. In the engineering business, the company has been admitted to the Water Corporation's Panel in Western Australia, prequalifying it to bid for significant automation and control works, and has continued to grow its water offering along the east coast of Australia.

During the remainder of FY25, Synertec will: safely and efficiently complete Powerhouse commissioning and site works at Santos; focus on closing near-term Powerhouse opportunities; continue to develop strategic partnerships to expand market opportunities for Powerhouse; advance opportunities to apply Powerhouse IP to different markets; develop supply chain partnerships that deliver significant cost advantages and supply resilience; and continue to execute its engineering strategy of targeting and winning long-term contracts with government agencies and large infrastructure entities.