SKS Technologies Group Ltd (ASX: SKS) shares are having a very strong session on Thursday.
At the time of writing, the small cap ASX stock is up 25% to $1.92.
Why is this small cap ASX stock rocketing?
Investors have been bidding the small cap higher today following the release of a big announcement.
But before we move onto that announcement, what exactly is SKS Technologies?
Well, it specialises in the design and installation of electrical, audio visual, and communication networking solutions across Australia.
The company notes that it serves the full spectrum of industry sectors, including data centres, defence, mining, health, retail and commercial buildings. Its mission is to "create sustainable and profitable business growth by focusing on delivery capabilities and integration synergies across its regions and divisions."
According to today's announcement, the small cap ASX stock has received written confirmation of the award of a data centre project worth approximately $100 million with major construction company, Erilyan Group.
The project, which is located in Melbourne's western suburbs, is for a third facility, Building C, for an international hyperscale data centre operator.
The release notes that Building C follows the successful completion by SKS Technologies of contracted works for Buildings A and B.
Formal contracts are expected to be executed in the coming weeks with an expected project completion date of September 2026.
'Built an enviable reputation'
The small cap ASX stock's CEO, Matthew Jinks, was very pleased with the news. He said:
The awarding of this project with Erilyan Group underscores our unerring focus on excellence in project execution. The frequency of repeat business has always been a feature of SKS Technologies' operational performance and is founded on a proactive approach to communicating with our customers and an execution framework designed to deliver complex projects to their optimal level.
We have quickly built an enviable reputation in the industry for our data centre work, and it has continued to translate into successful tender processes for new and expanded facilities.
What's next?
The company highlights that the Building C project award increases its work on hand to a total of $220 million. The project will be funded through existing working capital and bank financing facilities.
Looking further ahead, its pipeline of opportunities remains strong across all market sectors. In fact, it estimates that the total amount currently under open tender stands at $492 million.
