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- A mixture of COVID-19 and growing pains caused revenue to lag behind and losses to deepen for Vection Technologies (VR1) over the half-year
- VR1’s revenue fell by 64 per cent for the period ended December 31 with its after-tax net loss deepened to roughly $1.5 million
- Despite the glitch, the company’s longer term growth strategies are already paying off, with roughly $1.3 million lined up in contracts for the second half of the fiscal year
- Looking ahead, Vection flagged its move to a “leading strategy phase” and plans to assess a restructure of its international divisions
- Investors appear unperturbed the announcement, with VR1 shares in the grey trading at 11 cents
A mixture of COVID-19 and growing pains caused revenue to lag behind and losses to deepen for Vection Technologies (VR1) over the half-year.
Vection’s total revenue took a hit for the interval, decreasing 64 per cent on the $2 million it collected in the first half of the year, to clock in at $737,240.
The company maintained COVID-19 created “challenging” economic conditions during 2020 and noted implementing its long-term growth strategy generated a lag in first-half revenue.
Despite this, Vection affirms the strategy is already generating early growth signs looking to the second half of the fiscal year, with roughly $1.3 million lined up in secured contracts.
Overall, the company’s after-tax net loss deepened to roughly $1.5 million, a marked increase on the $280,714 realised for the previous period. In its explanation, VR1 cited non-cash related expenses, depreciation and the deferral of significant contract work towards the second half of the year.
Company spending was also trimmed over the period, dropping 6 per cent on the prior half to total $2.2 million.
Cash balances were bolstered significantly after receiving $1.6 million in strategic funding from the Italian government’s investment and business development agency and roughly $6 million from an oversubscribed placement to sophisticated and institutional investors.
Looking ahead, Vection flagged its move to the “leading strategy phase”, which hopes to expand Vection’s presence in companies’ application landscapes, while capturing new business opportunities and protecting market positions.
VR1 also indicated plans to assess a restructure of its international divisions to carry out the next phase, which is set to include three sub- holdings in Australasia, Europe and North America.
Investors appear unperturbed the announcement, with VR1 shares in the grey trading at 11 cents at 12:30 pm AEDT.
