Vection Technologies (ASX:VR1) Accelerates Path to Profitability with Strong 1H25 Results
Financial Performance
Vection Technologies reported revenue of $12.6 million for the first half of FY25, marking a 15% increase compared to the previous corresponding period. The company achieved a normalised EBITDA of $55k, a 101% improvement from the prior year. EBITDA loss narrowed to $2.3 million, a 69% improvement year-on-year. Total debt was reduced by $5.4 million, standing at $10.0 million. Earnings per share improved to $(0.29), up 63% from $(0.8) pcp. Pro-forma revenue, including the recent acquisition of The Digital Box, reached $16.3 million, a 49% increase on a comparable period.
Operational Highlights
Vection secured several significant contracts, including a $3.6 million XR contract with Cometa and a $1.6 million deal with Brexia Med. The company also partnered with Dell, winning initial and additional orders totaling $1.0 million. Other notable contracts include a $0.7 million agreement with KIOSK Embedded Systems and a $1.6 million distribution deal with SolidWorld. Strategic partnerships with major firms like Dell and Synergy have enhanced Vection’s market presence across EMEA and beyond. Additionally, Vection acquired The Digital Box and raised $2 million in capital to integrate generative AI into its solutions. Board changes include appointing Marco Landi as Independent Non-Executive Chair and Cameron Petricevic as Independent Non-Executive Director.
Executive Comments
Gianmarco Biagi, Vection’s Managing Director, stated, “In the first half of FY25 there was a robust improvement in company performance, with sales growth, a significant improvement in EBITDA and a reduction in debt, highlighting ACCELERATING THE PATH TO PROFITABILITY. ”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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