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- Surveying service company Veris (VRS) has updated the market on its third-quarter financials during the 2020 financial year
- The ASX-lister detailed activities across its Veris Australia and Aqura Technologies businesses
- Third-quarter performance across the group was impacted by weather conditions and the COVID-19 pandemic
- Veris Australia’s revenue was down compared to the previous corresponding period, bringing in $17.8 million for the quarter compared to $23.1 million in 2019
- Meanwhile, Aqura continues to show growth, with revenue up to $4.88 million this quarter, compared to $4.5 million over the same period in 2019
- However, the business did experience a small loss in earnings before interest, tax, depreciation and amortisation over this quarter
- On market close, Veris is up 14.3 per cent and is selling shares for 2.4 cents each
Surveying service company Veris (VRS) has updated the market on its third-quarter of the 2020 financial year.
The ASX-lister detailed activities across its Veris Australia and Aqura Technologies businesses.
Third-quarter performance across the group was impacted by several factors. In the first part of the quarter, the Australian bushfires impacted large parts across the country and impacted project delivery.
After the fires, a number of regions across Australia and key markets in which Veris
operates were then hit by extreme weather conditions including cyclones, heavy rainfall and hailstorms which impacted project productivity and therefore revenue.
Most recently, COVID-19 came to town and caused a pandemic around the world. Veris says this has impacted sectors differently.
“With modifications to our operational practices, both Veris Australia and Aqura Technologies continue to deliver projects for our clients in a safe and efficient manner,” the company said.
Veris Australia
Due to the current economic climate, Veris Australia is working to reduce its operational headcount needed to meet its workload, while also making sure it meets the needs of the current and anticipated market conditions.
The company is looking to reduce operational costs and plans to reduce operational overhead costs by June 2020. These costs cuts are to ensure stability as the market emerges from the current period of uncertainty.
Its revenue was down compared to the year before, with Veris Australia bringing in $17.8 million for the quarter, compared to $23.1 million in 2019.
Veris Australia CEO Michael Shirley says the company has a strong pipeline of future work, including recent engagements across significant infrastructure, engineering and cadastral scopes of work in New South Wales, Victoria, Queensland and Western Australia.
“We are confident that despite extraordinary circumstances in recent months — with factors such as natural disasters and COVID-19 beyond anyone’s control
— expected growth in key sectors such as engineering survey and digital and spatial will continue to underpin Veris Australia well into the future,” he said.
“We have taken proactive steps to manage the impact of COVID-19 on our business in these unprecedented times,” he added.
Aqura Technologies
The company has continued to show growth in both its product offering and geographic markets reflected in the revenue growth for the quarter, despite suffering project delays to a number of large projects due to COVID-19.
Aqure revenue was at $4.88 million this quarter, compared to $4.50 million in 2019.
“These project delays were confirmed in March and materially impacted the expected revenues,” the company told the market.
However, the company did report a loss in earnings before interest, tax, depreciation, and amortization (EBITDA) for the quarter of $65,000, compared to last year’s $580,000 in positive earnings.
“Aqura continues to work closely with its clients to manage these disruptions and is encouraged to see a number of the impacted projects are largely back on track,” the company said.
Aqura Technologies CEO Travis Young says the company has felt the impacts of the COVID-19 through project delays, specifically in March, which impacted
quarterly results overall.
“Continued investment in geographic and product and service line diversification, coupled with the effects of COVID-19 related project delays impacted quarterly EBITDA margins,” he told the market.
“We are proud to have realised strong project delivery margins and look ahead to the final quarter of this financial year and FY21 with optimism,” he added.
On market close, Veris is up 14.3 per cent and is selling shares for 2.4 cents each.
