• Revenue down 10% to $35.6m
• Profit down 71% to $1.0m
• Interim dividend of $0.0023 per share declared

VEEM Ltd has reported a 10% decrease in revenue to $35.6 million and a 71% decline in profit to $1.0 million for the half year ended 31 December 2024. The company's earnings before interest, tax, depreciation and amortisation (EBITDA) were down 43% to $3.9 million. Cashflow from operations was $1.8 million, down 50% from the prior corresponding period. The decrease in revenue and profit was primarily due to lower deliveries and new orders in the defence and ASC segments, as well as some delays in propulsion orders. However, the company's engineering products and services revenue, excluding defence and hollow bar, was up 22% to $5.3 million. VEEM continued to invest in research and development during the period, including work on the new Sharrow project and further development of its gyrostabiliser range. The company has declared an unfranked interim dividend of $0.0023 per share, representing approximately 30% of net profit after tax for the half-year.

VEEM expects to maintain the momentum of FY24 in propulsion, with growth expected to come from increased sales and marketing efforts for traditional propellers, SHARROW by VEEM and VEEM's new shaftline range. The company's defence revenue is expected to remain at current levels in line with the cyclical nature of the business. VEEM is also well positioned to take advantage of further defence work opportunities that may arise out of the AUKUS partnership.

VEEM has a robust core foundry and engineering business, including its own products, which have been able to make up for some of the reduction seen in defence, although with lower margins. The company's order book is strong and demand is expected to continue, with margins improving as a result of lessons learned on several new engineering projects. VEEM is also working on a plan to significantly accelerate the design process for its SHARROW by VEEM propellers in order to support sales to B2B customers.