VEEM, a prominent designer and manufacturer of high-technology marine propulsion and stabilisation systems, has announced record financial results for the year ending 30 June 2024.
In an ASX announcement, the company reported a net profit after tax (NPAT) of $7.0 million, reflecting a 70 per cent increase compared to the previous year.
VEEM’s revenue surged by 35 per cent year-on-year, reaching $80.6 million, while total activity for FY24 stood at $81.6 million, marking a 29 per cent growth from FY23.
The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) saw a 48 per cent rise, amounting to $14.8 million.
These results were achieved despite nonrecurring costs, including a $0.5 million amortisation expense for a liver cancer research project and $0.8 million in initial expenses related to the Sharrow propeller project.
“We are very pleased to be able to report a 70% increase in NPAT to $7.0 million for FY24,” said Mark Miocevich, managing director of VEEM.
“This comes on the back of a 35% increase in revenue to over $80 million, which is a record for VEEM.”
The company’s earnings per share (EPS) also saw a significant rise, reaching 5.15 cents per share, up 70 per cent from the previous period.
Strong cash flow from operations, which increased by 77 per cent to $8.4 million, allowed VEEM to make debt repayments totaling $4.0 million, further strengthening its financial position.
A major highlight of the year was the surge in gyro sales, which grew by 147 per cent to $12.3 million, driven by Strategic Marine’s accelerated purchases. The company also secured orders worth $3.4 million as of 30 June 2024.
In addition, VEEM signed an exclusive worldwide licence agreement with Sharrow Engineering to manufacture and sell Sharrow-designed propellers for inboard vessels.
These propellers will be branded as SHARROW by VEEM, with customer rollouts already underway. Propulsion sales increased by 30 per cent during the year, reaching $32 million.
“The increased propeller capacity installed late in FY23 was utilised early in the year to reduce the order backlog in propellers,” Miocevich noted.
“Subsequently, propulsion sales stabilised, contributing significantly to our record revenue.”
VEEM said its investment in research and development (R&D) remained strong, with the company spending $4.5 million on formal R&D projects during FY24.
Additionally, over $4.6 million was invested in capital and development expenditures, including robotics for its Baile Rd facility and improvements in gyro engineering.
“Currently, the outlook for FY25 is that the core business will continue to generate similar levels of activity,” Miocevich added.
“We are focusing on generating growth in revenue through new products, markets, and regions, as well as internally focused on improving margins,” he noted.
For more details on this announcement, please visit VEEM’s website.
