There may be doom and gloom around the economy but one certainty is that we’re going to need water no matter what, which has contributed to water service provider Vysarn (ASX: VYS) reporting a big lift in earnings for FY24.
For the year ending 30 June 2024, Vysarn reported revenue of $75.9 million, an increase of 17% from the previous year. EBITDA also saw a 31% increase, to $16.3 million while NPAT rose 106% to $7.9 million.
Vysarn’s revenue growth in 2024 was driven by an array of contributions from its subsidiaries, including consultancy, hydrogeological drilling, test pumping, and managed aquifer recharge.
Operationally, Vysarn made progress across its various business units. Pentium Water expanded its workforce by 50% to meet the growing demand for its groundwater and surface water advisory services. Pentium Hydro achieved earnings growth and strategically enhanced its rig fleet by selling a non-core rig and acquiring a new dual rotary rig.
Additionally, Pentium Test Pumping increased its earnings through the deployment of a second test pumping rig and secured contract extensions.
Project Engineering continued its rapid expansion, particularly in the sale of Managed Aquifer Recharge units to Tier 1 iron ore miners. The unit’s growth was supported by its ongoing efforts to explore new markets and enhance service offerings.
Looking ahead, Vysarn is well-positioned to continue its growth trajectory. The Company is pursuing diversification into new sectors and geographies with a well-capitalised balance sheet. Multiple acquisition targets have been identified as part of its strategy to expand operations and service offerings further.
The Company made significant strides in its strategic growth, highlighted by the establishment of Vysarn Asset Management on 15 May 2024. This move was a part of its broader goal to create a fully integrated water services company, reflecting its commitment to leveraging in-house intellectual property to capitalise on investment opportunities in water resources and related infrastructure.
As of 30 June 2024, the Company had $3.72 million of cash on hand.
Sidra is a Business Writer with The Sentiment
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