Veris to cut costs

Veris has flagged operational and executive management changes following a review of the business, as the surveying services company seeks to reduce costs by around $3 million per annum.

Veris told the ASX phase two of its operational review was now complete, and said as result a significant number of measures have been undertaken to increase efficiency and improve margins, particularly across the Veris Australia business.

It said this would comprise of “refreshing the composition of the executive team” to align more closely with operations, which includes reducing the number of senior management positions in both corporate and operations.

Additionally, no incentive payments for the 2019 financial year will be paid to the executive team, and the company will shed less profitable service lines and close less profitable office locations in Australia.

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

“In parallel, we have reviewed our corporate structure and overhead costs within both the Veris Australia operations and corporate with the aim of driving further efficiencies and lowering expenditure,” he said.

“We have also positioned our resources to better take advantage of technological and geographic opportunities over the coming years.

“Regrettably, these changes will result in the departure of good people from Veris, and we wish them well in their future endeavours.

“In combination, I am confident these measures will see improved margins in FY20.”

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

For the first half of the financial year it posted earnings before interest, taxation, depreciation and amortisation of $3.3 million on revenue of $63.6 million.

This EBITDA figure was 23 per cent lower than the prior corresponding period.