• Revenue, EBITDA and NPAT down on prior year due to raw materials, freight, staff shortages and COVID impacts
• Gyro sales of $3.3m, orders on hand of $2.4m
• Propeller revenue of $14m down 9% due to delayed orders

VEEM Ltd's 1HFY25 results came within the guidance range, with revenue of $33.6m (down 10% on 1HFY24), EBITDA of $3.9m (down 43%) and NPAT of $1.0m (down 71%). The company's total activity (sales plus change in work-in-progress) was $34.5m, down 13% on the prior year. The reduced financial performance was attributed to raw materials and freight cost increases, general staff shortages, and the impact of COVID-19 on customers, suppliers and staff. Gyro sales were $3.3m, down 35% as a large accelerated order for Strategic Marine was completed. Propeller revenue of $14.0m was down 9% due to delayed orders, which are now expected to be fulfilled in 2HFY25. Defence revenue of $7.3m was down 15% on 1HFY24 due to the cyclical nature of the work. VEEM was awarded a $1m government grant to purchase a multi-axis CNC machine and scanner for manufacturing propellers and other critical components for the Navy. The company sees a positive outlook for its propulsion business, with expansion plans for its propeller facility, and expects improved revenue and margins in 2HFY25 as the transient factors impacting the first half are resolved.

For 2HFY25, VEEM expects increased revenue and margins compared to 1HFY25 as the transient factors impacting the first half are resolved.

VEEM sees a positive outlook for its propulsion business, with expansion plans for its propeller facility, and expects improved performance in 2HFY25.