Veris Limited has reported a remarkable 212% increase in profit before tax for H1 FY25, driven by a strategic pivot towards higher-margin projects and successful restructuring efforts. Despite a slight revenue dip, the company’s strong order book and cash position signal robust growth potential.
- Profit before tax rises 212% to $1.0 million in H1 FY25
- Group PBT margin improves to 2.1%, doubling prior year
- Revenue slightly down 3.3% to $46.8 million due to strategic project selection
- Cash balance strengthens to $17.6 million
- Secured forward workload exceeds $55 million with pipeline over $190 million
Strong Profit Rebound Amid Strategic Shift
Veris Limited (ASX: VRS), a leading digital and spatial data advisory firm, has delivered a significant turnaround in profitability for the six months ended 31 December 2024 (H1 FY25). The company’s unaudited profit before tax (PBT) surged 212% to $1.0 million, a clear signal that its transformation strategy and restructuring initiatives are bearing fruit.
While revenue declined modestly by 3.3% to $46.8 million, this was a deliberate outcome of Veris’ strategic focus on prioritising higher-margin contracts and selective project engagement. The company’s PBT margin doubled to 2.1%, underscoring improved operational efficiency and cost discipline.
Transformation Strategy Gaining Traction
The results reflect the successful execution of restructuring measures initiated in the second half of FY24, which included operational optimisation and a sharper focus on digital strategy initiatives. CEO Michael Shirley highlighted that the momentum built in Q1 FY25 accelerated through the half, demonstrating that the company’s repositioning is translating into tangible financial benefits.
Veris’ approach to proactively selecting projects with key clients and targeting higher-value work has allowed it to maintain a robust order book exceeding $55 million for the next 12 months. Additionally, the unsecured project pipeline remains strong, with a weighted value surpassing $190 million over the next two years, positioning the company well for sustained growth.
Financial Strength Supports Future Opportunities
Veris further bolstered its balance sheet, increasing cash reserves to $17.6 million at the end of December 2024, up from $16.1 million six months earlier. This enhanced liquidity provides the company with the flexibility to invest in its digital transformation capabilities and seize emerging opportunities in the spatial data consulting market.
Despite ongoing macroeconomic challenges such as cost-of-living pressures and competitive market conditions, Veris’ disciplined cost management and strategic focus have enabled it to improve profitability while maintaining a strong financial position.
Outlook: Confidence in Continued Growth
Looking ahead, Veris remains confident that its transformation journey will continue to drive improved financial performance. The company’s commitment to digital innovation and high-margin project delivery is expected to solidify its leadership in the digital and spatial data advisory sector throughout 2025 and beyond.
Investors will be watching closely for the upcoming audited half-year results, due 24 February 2025, to validate these encouraging preliminary figures and assess the sustainability of Veris’ growth trajectory.
Bottom Line?
Veris’ strategic pivot is paying off, but sustaining growth amid revenue pressures will be the next test.
Questions in the middle?
- Will Veris sustain margin improvements as it scales higher-margin projects?
- How will the company navigate competitive pressures while pursuing digital transformation?
- What impact will the upcoming audited results have on investor confidence?