Vection Reports 1H FY25 Results

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Stock Vection Technologies Ltd (VR1.ASX)
Release Time 28 Feb 2025, 1:41 p.m.
Price Sensitive Yes
 Vection Reports 1H FY25 Results
Key Points
  • Solid revenue growth, achieving $12.6m, up 15% pcp
  • Normalised EBITDA was positive by $55k, an improvement of 101% (was $(-4,2)m pcp)
  • Considerable earnings improvement, with EBITDA loss of $2.3 m, improved by 69% pcp
Full Summary

Vection Technologies Ltd (ASX:VR1, OTC:VCTNY) reported its financial results for the six months ended 31 December 2024. The company achieved solid revenue growth of 15% year-over-year, reaching $12.6m. Normalised EBITDA was positive at $55k, a significant improvement of 101% compared to the previous corresponding period (pcp) of $(-4.2)m. EBITDA loss also improved by 69% to $2.3m compared to pcp. The company reduced its total debt by $5.4m compared to 2024. Earnings per share were $(0.29), up 63% versus pcp of $(0.8). The contribution of the recent AI acquisition, The Digital Box (TDB), was not included in this result but would have added $3.7m in revenue, bringing the total group revenue to $16.3m, up 49% pcp. Recurring revenue, including TDB, was approximately 34% of total revenue. Operationally, Vection secured several significant contract wins and partnerships, including deals with Cometa, Brexia Med, Dell, KIOSK Embedded Systems, Natuzzi, Nestlé, and others. The company also made strategic acquisitions and board changes, appointing Marco Landi (former Apple President) as Independent Non-Executive Chair and Cameron Petricevic as Independent Non-Executive Director. Moving forward, Vection plans to continue scaling its AI-driven and XR solutions through subscription-based models for an expanding global client base, focusing on healthcare, defence, retail, and manufacturing sectors.

Guidance

Vection expects to deliver organic revenue growth in the second half of FY25 and a cost reduction program, which together are expected to deliver shareholder value.

Outlook

Vection plans to continue scaling its AI-driven and XR solutions through subscription-based models for an expanding global client base. The company is well positioned to seize opportunities in healthcare, defence, retail, and manufacturing, where data-driven innovation, user interactivity, and operational efficiency converge.