Veris revenue down 7.9pc

Spatial data services provider Veris has announced a 7.9 per cent reduction in revenue during the first half of the 2024 financial year, citing multiple factors.

Veris generated $48.32 million, down from $52.48 million during the prior corresponding period. 

"The decrease in revenue resulted from the combination of a number of factors," Veris said.

"Foremost of which was the continuation of Veris’ strategy of pivoting focus away from smaller, low value projects which typically require relatively higher administrative and servicing costs, resulting in lower margin generation."

The Jolimont-based company also recorded an underlying profit of $760,000. This was down from $786,000 during the prior corresponding period, while its earnings before interest, tax, depreciation and amortisation dipped to $4.95 million from $5.39 million during the first half of 2023. 

Veris managing director and chief executive officer Michael Shirley believes the shift of strategic intent will pay off in the long term. 

"As part of our focus on maximising returns, we've continued our previously articulated shift in focus towards key clients, markets and larger opportunities where our end-to-end solutions and high value digital offerings are in demand and align with our vision for sustainable growth and improved margins," Mr Shirley said.

"Whilst there has been a short-term impact on the business in doing this, this strategic shift sets the stage for sustained success." 

With more than $60 million of work confirmed over the next 12 months, the company is confident its margins will also improve.

"Veris is proactively focusing on client and project opportunities that deliver increasing margins rather than chasing revenue growth for the sake of revenue growth," the company said.

"Executing on this strategy will position Veris more strongly as a result."

Veris last traded at 6.9 cents per share, up 6 per cent, as of 12.17pm AWST.