Solar Integrated Roofing Corp (OTCMKTS: SRIC) will be launching a streamlining program to lower costs and increase synergies among its subsidiaries. These two moves, along with current record sales, will help the company achieve profitability by Aug 31.
Solar Integrated Roofing Corp announced record-breaking sales
Solar integrated had record sales of $25 million for the first what on August 31, 2021. The company expected that revenue for the 12 months ended May 31, 2022, will reach $100 million. This growth resulted from the roofing division, EV charging brands and solar power division, driving sales to record numbers.
The sales did not include revenue from the company’s two acquisitions, the USA Solar Network and Future Home Power. Solar integrated believes it can double these sales as it gains revenue from its subsidiaries and grows.
The streamlining program will focus on reducing expenditure which will enable Solar Integrated to be more competitive and eventually profitable. The program will also improve operations within the company by enhancing cross-functional collaboration and the flow of communication. Solar Integrated has set a target of about $1 million for annual costs by December 31.
Solar integrated plans to focus on increasing synergies
According to David Massey, the Chairman and CEO of Solar Integrated, after acquiring its last subsidiary, it decided to focus its attention on attaining profitability and organic growth. To increase synergies within its subsidiaries, the company plans to eliminate redundant practices and implement new practices. In this way, operation across all companies will be simplified and execution improved, leading to a better cost structure.
Massey adds that these factors, together with their increased sales growth, will lead the company to profitability. The company also announced a share buyback that will allow it to increase the share value for its investors.
Solar Integrated Roofing Corp, formerly Landstar Development Group Inc, is a roofing and solar installation company. It focuses on residential and commercial properties and tries to acquire companies that specialise in the same field.
Services provided by the company include HVAC, installing and selling solar energy systems, battery backup, charging stations for electric vehicles, among others.