How Will SRJ Technologies Turn FY25 Setbacks into FY26 Growth?
SRJ Technologies reported an 11% revenue decline in FY25 amid a major strategic reset and leadership overhaul, positioning itself for growth in FY26 with expanded Middle East operations and a strengthened pipeline.
- FY25 revenue declined 11% to £1.835 million due to Middle East delays and reduced Asian client activity
- Completed strategic reset including leadership changes and regional acquisitions in the UAE
- Secured multi-year joint ventures valued over US$29 million in the Middle East
- Underlying cost base streamlined despite a £3.5 million loss including one-off restructuring costs
- Plans to divest non-core UK subsidiary and completed a capital raise of approximately A$2.54 million
A Year of Transition and Reset
SRJ Technologies Group Plc (ASX: SRJ) has released its FY25 results, marking a deliberate transition phase focused on reshaping the company’s structure, leadership, and regional footprint. The year saw revenue decline by 11% to £1.835 million, primarily impacted by delayed mobilisation in the Middle East and a significant drop in activity from a key Asian client amid regulatory uncertainties.
Despite these setbacks, the company undertook a comprehensive strategic reset, including the appointment of industry veteran Kurt Reeves as CEO and the acquisition of First Avenue General Contracting LLC in the UAE. This acquisition, alongside the incorporation of Air Control Entech Survey LLC, has established a robust operational platform in the Middle East, a region critical to SRJ’s long-term growth ambitions.
Operational Highlights and Market Expansion
SRJ’s repositioning as an integrated asset integrity and maintenance services provider has been underscored by several key milestones. Notably, the company secured and delivered a £695k inspection contract with a major Oil & Gas supermajor for North Sea assets and expanded its asset integrity offerings with a £160k contract for a global FPSO operator.
Strategic joint ventures signed during the year promise multi-year scopes of work valued at over US$29 million, although revenue recognition will depend on client-driven call-off orders. The company’s BoltEx product also gained traction, with a US$269k contract delivered to an FPSO operator in Guyana.
Financial Performance and Cost Management
FY25’s financial results reflect a £3.5 million loss after tax, including approximately £858k in non-recurring costs related to acquisitions and restructuring. Adjusted for these one-offs, SRJ has streamlined its cost base, aligning expenses with the new operating scale and strategic priorities. Gross margins were affected by a shift in sales mix, with lower-margin ACE solutions comprising a larger share of revenue.
Cash reserves stood at £610,590 at year-end, supported by a fully underwritten capital raise of approximately A$2.54 million completed in August 2025. The company also plans to divest its UK subsidiary, SRJ Technology Limited, to further focus on core markets and reduce overheads.
Looking Ahead: Execution and Growth in FY26
With the transition largely complete, SRJ is poised to shift towards execution and operational delivery in FY26. The company enters the year with an expanded pipeline across the UAE, broader Middle East, and existing ACE markets. Management anticipates revenue growth driven by contracted work and a growing opportunity pipeline, although timing remains subject to client scheduling.
SRJ’s leadership team, bolstered by new appointments including Non-Executive Director Jason de Silveira, brings deep industry expertise and a track record of growth. The company’s focus on technology-driven asset integrity solutions positions it well to capitalise on increasing demand for advanced inspection and maintenance services in energy and industrial sectors.
Bottom Line?
SRJ’s FY25 reset lays the groundwork for growth, but execution and capital raising in FY26 will be critical to realising its potential.
Questions in the middle?
- How quickly will SRJ convert its expanded Middle East pipeline into revenue?
- What impact will the divestment of the UK subsidiary have on overall profitability and cost structure?
- Can the company successfully complete its planned equity raise to support growth initiatives?
