Verbrec Limited’s FY2025 results reveal a revenue decline and lower profit from continuing operations, yet a near doubling in net profit attributable to members and a maiden dividend declaration.
- Revenue down 8.3% to $85.6 million
- Profit from continuing operations after tax falls 21.4% to $3.7 million
- Net profit attributable to members rises 91.7% to $3.7 million
- First dividend declared in FY2025 – 0.1 cents per share
- Net tangible assets per share increase 54.8% to 4.8 cents
Overview of FY2025 Financial Performance
Verbrec Limited (ASX, VBC), a Brisbane-based engineering services company, has released its preliminary final report for the financial year ended 30 June 2025. The company reported a revenue decline of 8.3%, falling to $85.6 million from $93.4 million in the previous year. Profit from continuing operations after tax also decreased by 21.4%, down to $3.7 million.
Despite these setbacks, the net profit attributable to members nearly doubled, rising 91.7% to $3.7 million. This divergence suggests adjustments or one-off items impacting the bottom line, a nuance that investors will want to explore further in the detailed FY2025 Annual Report.
Dividend Declaration and Shareholder Returns
Notably, Verbrec declared its first dividend in this reporting period, announcing a final dividend of 0.1 cents per share. This marks a shift from the previous year, when no dividends were paid. The dividend record date is set for 26 September 2025, with payment scheduled for 17 October 2025. The absence of a dividend reinvestment plan means shareholders will receive cash payments rather than additional shares.
Balance Sheet Strength and Asset Growth
Net tangible assets per share increased significantly by 54.8%, reaching 4.8 cents compared to 3.1 cents the prior year. This improvement indicates a stronger asset base relative to the number of shares outstanding, potentially reflecting asset revaluations or reduced liabilities. No changes were reported in subsidiaries or joint ventures, suggesting operational stability in the company’s structure.
Looking Ahead
The company’s financial statements have been audited and prepared in accordance with Australian Accounting Standards, lending credibility to the reported figures. However, the preliminary report offers limited operational commentary or forward guidance. Investors will need to await the full FY2025 Annual Report for detailed insights and management’s strategic outlook.
Overall, Verbrec’s FY2025 results present a mixed picture, revenue and core profit pressures contrast with improved net profitability and a return to dividends. How the company plans to navigate these challenges and capitalise on its strengthened balance sheet will be key to watch in the coming months.
Bottom Line?
Verbrec’s FY2025 results set the stage for a pivotal year ahead as it balances profit pressures with renewed shareholder returns.
Questions in the middle?
- What factors contributed to the sharp rise in net profit attributable to members despite lower operating profit?
- Will Verbrec maintain or increase its dividend payout in FY2026?
- How does management plan to address the revenue decline and improve profitability going forward?