The restructuring includes the sale of its energy unit to new company, FrOG Tech (From Oil to Groundwater) which is operating out of SRK’s former office in Canberra. FrOG Tech was set up as a management buy-out by Loutit, the new MD of FrOG.
“The sale allows SRK to focus exclusively on expanding our core mining business and to develop additional services, particularly in the major and expanding east coast markets,” said managing director of SRK, Dr Peter Williams.
“As a result of significant increased market demand for high quality consulting services, SRK has rapidly expanded over the past six months.”
The company believes the sale will result in an immediate revenue reduction of about 15% to the SRK group, but that the investment of sale proceeds into the engineering, resources and geophysics divisions of the core mining business units would result in a three-fold increase in revenue over the projected revenue from the Energy division.
Dr Williams noted that the growth prospects in the Energy sector are better dealt with under a different business model, which is now being aggressively pursued by FrOG Tech.
