H1 FY2025 - Half Year Results Presentation
| Stock | Verbrec Ltd (VBC.ASX) |
|---|---|
| Release Time | 27 Feb 2025, 5:15 p.m. |
| Price Sensitive | Yes |
H1 FY2025 - Half Year Results Presentation
- Third consecutive profitable period since appointment of new management team in 2023
- Higher period-on-period gross margins, establishing another multi-year high
- Prudent use of cash leaving cash reserves stable
Verbrec Ltd reported its H1 FY2025 results, with the company delivering its third consecutive profitable period since the appointment of a new management team in 2023. The company achieved higher period-on-period gross margins, establishing another multi-year high, and maintained prudent use of cash, leaving its cash reserves stable. Despite the trend of delayed projects impacting revenues in H1 FY2025, Verbrec's unweighted opportunity pipeline ($131.0m) and work in hand ($39.9m) were stronger than those reported at 31 October 2024. The tightening of mining capital expenditures and lack of industrial activity in New Zealand contributed to the delayed projects and impacted revenues in the half. The company's balance sheet continued to strengthen, with a reduction in overall borrowings and an increase in shareholder equity. Verbrec's operations and maintenance business also secured several multi-year contracts, including a 3-year contract for the Cape Preston Pipeline in Western Australia and a 5-year extension to operate and maintain the Roma Gas Pipeline in Queensland and five pipelines in the Bass and Otway basins in Victoria.
Verbrec's unweighted opportunity pipeline is $131.0 million, and its work in hand is $40.0 million for the remainder of FY2025.
Verbrec continues to expand its geographic reach with both its Operations & Maintenance and Asset Management businesses solidifying their presence in Western Australia. The company's Competency Training business has also expanded from 6 to 12 operating locations in early 2025. Verbrec is well-positioned to take advantage of the evolving energy landscape, with AEMO's 2024 Integrated System Plan predicting $122 billion in annualised capital costs of utility-scale generation, storage, firming, and transmission infrastructure in the optimal development path.