Veris Ltd Company Profile
ASX:VRS

In the box seat for additional high-margin revenues, supported by infrastructure spending tailwinds.

Veris, which achieved over $120m in revenues last financial year, will continue to pursue high margin opportunities from tier 1 customers.

  • Company
    Veris Ltd
  • Website
  • Sector
    Professional Services
  • Industry
    Research & Consulting Services
  • Code
    ASX:VRS
  • Socials

Company Overview

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Veris is a national surveying, geospatial, professional advisory and technology company, operating two wholly owned subsidiaries:

  • Veris Australia, which is engaged in providing surveying, 3D spatial and geospatial services, and;
  • Aqura Technologies, which provides ICT and technology services.

Veris provides multi-disciplinary services to tier-1 clients across the infrastructure, industrial, property, mining and commercial sectors.

Veris is currently focused on generating higher margin work, particularly across the 3D spatial and geospatial sectors. Veris intends to achieve this by by leveraging its existing nationwide footprint and diverse in-house capabilities via its Veris Australia subsidiary.

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Leveraging a Nationwide Footprint

Veris is in the box seat to benefit from the anticipated boom in infrastructure spending which is expected to reach $600bn over the next 15 years, as well as the growth in demand for its digital and spatial services.
Future Growth

Veris Australia is aiming to capture additional high-margin organic revenue from the growth of geospatial services including BIM workflows.

Pipeline

Veris have identified $410m of projects that they could target, made up of $346m in prospects and $73m of proposals.

Momentum

Aqura Technologies EBITDA in FY19 grew by over 100% year on year with significant work in hand for FY20.

Pipeline

The current of Veris projects has potential value of >$410M, with prospects of >$346M and Proposals of >$73M

Latest Presentation

Click here to read the company's latest presentation

Strong Advisory Board

Veris Australia has preeminent professionals within the business that are recognised industry leaders across the spatial and surveying industry. These professionals represent Veris and the surveying and spatial industry on several state and national boards such as Consulting Surveyors National.

Boom in Infrastructure

Industry experts believe that up to A$600bn is needed over the next 15 years to modernise aging infrastructure and support Australia's growing population.

BIM Workflow Growth

Queensland recently mandated BIM for all major infrastructure works worth over A$50m, with the potential for other states to follow suit. Veris is in an enviable position to capitalise on the growth of BIM workflows, given its technical in-house knowledge and expertise in geospatial, land surveying, 3D laser scanning and 3D data modelling.

BIM Video

Click here to watch the 1888 Heritage Scan to BIM model compelted by Veris

Earnings Resilience

Veris provide its suite of services across a wide array of industries, including across the residential, commercial, industrial, infrastructure and mining sectors. This diversification provides Veris with added protection against a down-turn in any particular industry.

Diversified Client Base

Veris service tier 1 clients across multiple sectors across the nation, with a growing focus on digital & spatial services.

Key Risks

Risks Veris face include and are not limited to:
Check Potential Risk: If Veris are unable to produce long term positive operating cash flows, it may affect the company's ability to service and repay its outstanding debt, which could lead to insolvency.
Check Potential Solution: Potential positive earnings & debt reduction, acquiring additional work identified in pipeline.
Check Surveying is a competitive and fragmented market which can put longer term pressure on profit margins
Check Potential Solution: Diversify into areas with higher profit margins.
Clock icon Information current at 10 December 2019
This section contains information provided by Veris Ltd, with the exception of any sections labeled as "risks". Although all due care has been taken, Mawson Graham ("SmallCapInsider") does not warrant the accuracy of the information provided in this section. It is not intended as an offer, invitation solicitation or recommendation with respect to the purchase or sale of any securities. The above information should not be relied upon as the sole representation of any matter that a potential investor should consider in evaluating Veris Ltd. Its affiliates or any of its directors, agents, officers or employees do not make any representation or warranty, express or implied, as to or endorsement of, the accuracy or completeness of any information, statements, representations or forecasts contained above, and they do not accept any liability for any statement made in, or omitted from, the above. Prospective investors should make their own independent evaluation of an investment in Veris Ltd. This information may contain forward looking statements concerning Veris Ltd. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking information provided by Veris Ltd, or on behalf of Veris Ltd. Forward looking statements are based on Veris Ltd's beliefs, opinions and estimates. No obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

Company Videos

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Analyst Commentary

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Long term potential for further revenue growth and margin expansion

Erik Bergseng CFA®
Written by Erik Bergseng CFA®
Published Sep 29, 2019

We believe Veris is a potential long-term opportunity for investors which has arisen due to short-term concerns about its surveying division’s margins. It is our view that this is a distraction from the longer-term potential that the company has which is to become a national leader in a diversified array of services including town planning, high margin geospatial services, communications and other professional services.

In addition, unlike many companies in this market capitalisation range, Veris has the benefit of already having a significant revenue base, which was ~A$120m p.a. as per the last financial year. Because of this relatively large revenue base, even an incremental improvement in existing margins in surveying could produce a material improvement in the group’s total EBITDA.

Further to this, we believe that the new Veris Group is more diversified than it was historically as a result of the Elton Consulting acquisition. The continued growth in higher-margin business segments and activities such as geospatial could also help increase margins for the Veris group over time. Diversification of revenue streams will also provide Veris with earnings resilience in the face of any downturn in any sector or region.

Key risks include, but are not limited to, the company's debt facilities which mature in November 2020 and the relatively low barriers to entry in surveying which may continue to pressure margins.


The information within this section has been provided by Mawson Graham and is for general information purposes only and is not intended to reflect any recommendations or financial advice. The information in this section has been prepared without taking into account your objectives, financial situation or needs. For this reason, you should consider the appropriateness of the advice or recommendation in light of your own personal circumstances, relevant risk factors, the nature and extent of your risk of loss, as well as the legal and accounting consequences before acting making an investment or trading decision regarding any Financial Product mentioned herein. While it is believed that all information sourced and contained within this section to be accurate at the time of publication, liability for any errors, omissions, accuracy or completeness of the information (except any statutory liability which cannot be excluded) is specifically excluded by Mawson Graham, its associates, officers, directors, employees and agents. Past performance is not a reliable indicator of future performance. Important Disclosure: Mawson Graham, its directors, associates and employees advise that they may hold securities, may have an interest in and/or earn brokerage, investor relations fees, corporate fees, and other benefits or advantages, either directly or indirectly from client transactions arising from any information mentioned within this section and in documents published within this section.
Mawson Graham
Mawson Graham

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