Spatial data service provider Veris (ASX: VRS) spent a large part of FY23 investing in its growth. It spent on new technologies and developed a suite of innovative solutions and services. Plus, it focused on key national clients as part of its Key Account Management program, resulting in a rise in Veris’ growth. 

Its initiatives bore fruit as the Company delivered revenue of $100.9 million in FY23, representing an increase of 9.2% on FY22. Its underlying profit before tax rose to $1.1 million from $0.1 million. In contrast to prior periods, the FY23 result comprised no government grants or one-off gains associated with divestments of group entities. So, it represents a huge pat on the back for Veris’s core offerings.

Managing Director & CEO, Dr Michael Shirley, said, “The results are a reflection of our continued strategic progress and we are proud to say we have done what we said we would do. Through continued focus on operational improvements and project management disciplines we have delivered for the first time a profitable result for the core Veris digital and spatial services offering. This has been based on continued year on-year margin growth. In doing so, we have maintained a strong capital base which provides a platform for further acceleration of the Company’s strategy in FY24 and beyond.”

Veris provides spatial data services—including maps, historical information and other geographic data—to different companies, like Rio Tinto, Lendlease, BHP and more. While the results look positive, the Company reported in its unaudited results that it had a softer second half, and, surprisingly enough, it had little to do with low demand. 

Veris saw higher than normal levels of catch-up leave taken by staff post-COVID and the seasonal preferences for leaves became evident. The Company said that this was the first time it became abreast of these cyclical trends across the year since the pandemic and is working on better workforce planning.

Shirley added, “Our stated strategy has been to transition our model to be Australia’s leading data-driven digital [and] spatial services business. A large part of this transition is to do more with the data we capture for our key clients. During FY23, we invested in our internal capabilities and solutions-design with the result being an emerging portfolio of data and digital-based product solutions which are now being commercialised.”

At the end of June 2023, the Company had $17.3 million in cash, a minor decline from FY22’s $18.2 million. The drop was a result of $900k being spent in connection with the ongoing on-market share buyback, while a $400k working capital adjustment settlement was paid to Telstra following the finalisation of the sale of communications solutions company Aqura, announced in FY22.

In a win for Veris shareholders, the Company declared a fully-franked final dividend of 0.15 cents per share together with its continuation of its on-market share buyback. In the second half of FY23, Veris extended its on-market share buyback program, which was initially announced in June 2022. The extension is for up to an additional 10% of its shares on issue for a further 12-month period through to June 2024.

Veris’s secured opportunities for FY24 are in excess of $55 million and will be executed over the next 12 months. Its unsecured project pipeline is also strong, coming in at over $190 million, due over the next two years. Of course, Veris is not exempt from the ongoing economic uncertainty, but most of its target markets are set to see major investments, keeping the Company in a safe spot.