Southern Cross Electrical Engineering’s east coast business has secured $25 million in new contracts to complete construction, electrical and communication works in NSW and the ACT.
Southern Cross Electrical Engineering’s east coast business has secured $25 million in new contracts to complete construction and communication works in NSW and the ACT.
The new work is in addition to the $40 million contract with CIMIC Group, awarded to Southern Cross’s Heyday5 subsidiary last month.
Under a new contract with Buildcorp Group, Heyday will design and build electrical services for a 12-level, 10,400 square metre office building in Sydney, with the work due to be completed in the first quarter of 2021.
Heyday will also design and construct electrical, security and ICT services at a 28,000sqm commercial office tower in Parramatta under a contract with Richard Crookes Constructions.
Work is due to be completed in the third quarter of FY21.
At Bondi Junction, Hutchinson Builders has contracted Heyday to install lighting, communication services, dry fire services, security and access control systems at a 14-storey residential apartment building, five retail tenancies and commercial tenancies, and three basement levels.
The project is due for completion at the end of next year.
Heyday will also reconfigure power infrastructure, mall lighting and communication services at Myer, located at the Hornsby Westfield Shopping Centre, under a contract with Scentre Group.
Work there is due for completion in the second half of this year.
In the ACT, Heyday has secured electrical and communication works at the ANU Research School of Physics and Engineering under a contract with Hindmarsh Construction Australia, with the project due to finish in the second quarter of FY21.
Heyday, acquired by Southern Cross in 2017 for $54 million, will also complete the early works and main electrical and communication services packages for the Birch Building refurbishment project under a separate contract with Hindmarsh.
At the same time, Southern Cross said it had delayed works on two remote projects, scheduled to begin last month, due to its location near communities at high-risk of COVID-19.
Southern Cross said while the Western Australia-based company had experienced little financial impact from the coronavirus, it had implemented cash preservation initiatives, including delaying capital expenditure and investment decisions.
Managing director Graeme Dunn said he had no doubt the COVID-19 situation would remain for some time.
“The strength of the company’s liquidity position allows us to have confidence to deal with current volatile conditions,” he said.
“While I expect we are entering a tougher period, I also believe this can lead to opportunities for which Southern Cross, having grown and diversified over recent years, is well positioned to capitalise on.”
Southern Cross says it maintains a strong balance sheet with $53.3 million in cash and no debt, as at December 31.
Its shares were up 2.4 per cent at 12:20pm AEST to trade at 44 cents.