Vysarn Limited (ASX:VYS) 1HFY25 Financial Results
Financial Performance
Vysarn Limited (ASX:VYS) reported revenue from operations of $41.02 million for the six months ended December 2024, reflecting a 5% increase compared to the previous year. EBITDA was $8.14 million, a decrease of 5%, while profit before tax stood at $5.24 million, down 13%. The company’s net tangible assets reached $46.60 million, and cash and cash equivalents were $17.59 million. Operational cashflow surged by 78% to $14.81 million, driven by effective EBITDA conversion and substantial debtors collection.
Acquisitions and Capital Raising
During the financial period, Vysarn completed the acquisitions of Waste Water Services Pty Ltd (WWS) and CMP Consulting Group Pty Ltd (CMP), contributing significantly to the company’s growth strategy. The WWS acquisition was valued at $7.5 million, generating $5.94 million in revenue and $1.75 million in profit before tax for the half-year. The CMP acquisition, completed for approximately $38.23 million, is expected to enhance Vysarn’s service offerings and expand its geographical footprint, including a renewed contract with Sydney Water. Additionally, Vysarn successfully raised $38.2 million from new institutional shareholders, allocating $23.1 million to CMP and $6.6 million to WWS, with the remaining funds earmarked for future growth initiatives.
Operational Achievements
The company’s operational segments performed in line with management’s expectations. The Industrial division, comprising Pentium Hydro and Pentium Test Pumping, faced challenges due to reduced asset utilisation in the iron ore sector but expects a rebound in 2HFY25. The Advisory division, including Pentium Water and CMP, maintained steady financial results, supported by increased demand in urban water services and successful integration of CMP. The Technology division, featuring Project Engineering and WWS, continued to deliver strong earnings amid sustained demand for water management solutions.
Future Outlook
Vysarn anticipates that FY2025 earnings will be primarily realised in the second half, supported by latent demand in the Western Australian resources sector and full contributions from WWS and CMP. The company targets year-on-year earnings growth for FY2025, leveraging its diversified portfolio and strategic acquisitions. Vysarn aims to solidify its position as a leading water services and infrastructure provider, with ongoing investments in executive management and business systems to support integration and growth across regions and sectors.
Motley Fool contributor Abbie Stokes 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 recommended Vysarn. 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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