The SRG Global Ltd (ASX: SRG) share price will be one to watch closely on Wednesday morning. This comes after the engineering company announced that it has secured a raft of contracts.
At yesterday's market close, SRG Global shares ended the day at 51 cents.
SRG Global is an Australia-based international construction, maintenance and mining services company. The group helps build skyscrapers, bridges, dams, transport infrastructures, mining, and oil and gas projects for customers worldwide. In addition, the company offers drilling solutions, civil engineering, and industrial maintenance services.
What's the details of the contracts?
SRG Global shares could be on the move today following the company's latest positive update.
According to this morning's release, SRG Global advised it has won two facade contracts, and a structures contract in Defence.
The first facade contract is for a project with Lendlease Group (ASX: LLC), on behalf of Charter Hall Group (ASX: CHC). The building at 555 Collins Street in Melbourne requires highly specialised works that include glass reinforce concrete cladding elements. It is expected the project will take around 20 months to finish. Works have begun already on the facade feature along with curved glazing throughout the tower.
In addition, the second facade contract entails the development of 60 King William Street in Adelaide's Central Business District (CBD). The scope of the project is to design, supply and install thermally broken high-performance facades. This is estimated to be completed within the next 24 months, with works starting immediately. Notably, the building will be home to the Federal Government agency, Services Australia.
The last of the contracts is again with Lendlease for specialised labour in the Defence sector. This includes structures work at the HMAS Stirling Facility at Garden Island in Western Australia. Most important, the deal represents the first time SRG Global has entered into this space. It is assumed that the contract will be completed by the end of the current calendar year.
SRG Global managing director, David Macgeorge commented:
We are very pleased to have secured these new contracts. These contract wins highlight the diverse service offering of SRG Global and our ability to operate across a broad range of industry sectors with key repeat clients.
SRG Global share price summary
Since June 2020, SRG Global shares have continued their upward growth trajectory posting gains by more than 160%. The company's share price is also within reach of breaking its 52-week high of 52 cents today.
On the valuation metrics, SRG Global has a market capitalisation of $227 million, with approximately 445 million shares outstanding.
