VEEM Ltd reported a significant increase in revenue, EBITDA, and NPAT for 1HFY24 compared to 1HFY23, with revenue up by 37%, EBITDA by 65%, and NPAT by 92%.
The company successfully increased propeller capacity by over 25% with two new machines commissioned in FY22, indicating strong demand as lead times did not reduce.
Gyro sales for the half-year were $5.0m, with orders in hand of $9.2m, driven by Strategic Marine accelerating their gyro purchases.
VEEM signed an exclusive worldwide agreement with Sharrow Engineering to manufacture and sell Sharrow designed propellers for inboard vessels for at least 17 years.
Revenue from the submarine program was $6.2m for the half-year, with total defense revenue of $8.6m, indicating a strong performance in the defense sector.
The company managed to reduce net debt by $2.0m after capital expenditures of $2.6m, demonstrating strong cash flow and financial management.
VEEM continues to invest in R&D, with $2.3m spent in the period, highlighting its commitment to innovation and product development.
The outlook for VEEM includes strong demand for its marine products, particularly gyrostabilisers and propellers, and continued strength in the defense sector.
VEEM is well-positioned to take advantage of opportunities in both marine and non-marine products, with adequate liquidity to fund operations and capital expenditure.
This announcement is a summary of the company approved ASX announcement on 22/2/2024 and is based on facts.