Veris bounces back after cutting costs

Surveying services business Veris recorded a 27.8 per cent rise in underlying earnings for the September quarter, underpinned by a substantial cost cutting strategy, which has been welcomed by investors.

Veris’s revenue fell 6.5 per cent to $23.2 million for the first quarter of this financial year compared to the prior corresponding period, but its earnings before interest, tax, depreciation and amortisation (EBITDA) rose from $1.8 million to $2.3 million.

Its EBITDA margin increased by 35.6 percentage points to 9.9 per cent.

Shares in Veris were up 15.4 per cent at 12.35pm AEDT to trade at 6 cents each.

In July, Veris flagged staff cuts and management changes following a review of the business, as it aimed to reduce costs by around $3 million per annum.

Managing director Adam Lamond said the company had taken a number of actions to increase margins and profitability across the business.

In February, Veris reported a $34 million non-cash impairment charge to its goodwill because of the poor trading performance of its core business.

Veris was the overall Business News Rising Stars winner in 2018.