VR1
Vection Technologies LTD
ASX
Annual Report to shareholders
Sentiment:
Annual Report
30 September 2024 6:21 PM
Vection Technologies Ltd reported a loss after tax of $9.999 million for FY24, but revenue increased by 30% to ~$33 million, driven by strategic acquisitions and high-value contracts.
Worse than expected
Despite a 30% increase in revenue, Vection Technologies still reported a net loss after tax, indicating that expenses outweighed the revenue growth.
Capital raise
A $2 million placement of ordinary shares at $0.10 was issued on September 5, 2024.
Up to circa 55 million Vection shares will be issued if TDB achieves sales and EBITDA objectives and balance sheet valuation targets one year post-acquisition.
Summary
- Vection Technologies Ltd released its annual report for the fiscal year ending June 30, 2024.
- The company reported a revenue of approximately $32.8 million, a 30% increase compared to the previous year's $25.3 million.
- However, the company also reported a loss after tax of $9.999 million, compared to a loss of $11.023 million in the previous year.
- The company's EBITDA loss was $6.381 million, an improvement from the previous year's loss of $9.723 million.
- The company's underlying EBITDA loss was $1.015 million, compared to a loss of $1.502 million in the previous year.
- Vection's cash and cash equivalents totaled approximately $7.6 million at the end of the fiscal year.
- The company made several strategic acquisitions, including Invrsion S.r.l. and MYR S.r.l., and announced the proposed acquisition of The Digital Box (TDB).
- The acquisition of TDB is expected to be completed in Q1 FY25 and is expected to be value accretive for Vection shareholders.
- TDB reported $10 million in unaudited revenue and $1 million in unaudited EBITDA in FY24.
- The company secured several high-value contracts, including a $4.9 million contract and multiple contracts totaling $971,000.
- Vection also secured a $2.1 million contract and an inaugural $500,000 XR naval solution project.
Sentiment
Score: 5
Explanation: While revenue growth is positive, the continued net loss and material uncertainty regarding going concern create a mixed sentiment. The acquisitions are viewed as positive, but their impact on profitability remains to be seen.
Positives
- Revenue increased by 30% to approximately $33 million.
- EBITDA loss improved compared to the previous year.
- Underlying EBITDA loss improved compared to the previous year.
- Successful strategic acquisitions enhancing offerings in fashion and retail sectors.
- Securing several high-value contracts across various sectors.
- Steady cash position throughout the year.
- Proposed acquisition of The Digital Box (TDB) expected to be value accretive.
Negatives
- Company reported a loss after tax of $9.999 million.
- Current liabilities exceed current assets by $3,811,000, raising material uncertainty about the company's ability to continue as a going concern.
Risks
- Dependence on third-party technologies that may become obsolete or experience version conflicts.
- Uncertainty in maintaining existing and establishing new strategic relationships.
- Dependence on third-party providers and potential negative impacts from changes to external platforms.
- Variability in sales cycles and difficulty in predicting financial performance.
- Challenges in managing growth and expanding operations.
- Data security and hosting risks associated with storing data in-house and with third-party providers.
- Impact of currency fluctuations on financial results.
- Compliance challenges with varying regulatory environments in different jurisdictions.
- Exposure to multi-jurisdictional risks.
- Impact of general economic conditions, tax reforms, and inflation on activities and funding capabilities.
- Inflationary pressures on technology prices, labor, and business conditions.
- Market conditions and share price volatility.
Future Outlook
Vection is well-positioned to capitalize on market opportunities and technological advancements in FY25, with its end-to-end spatial computing ecosystem driving growth and maintaining market leadership.
Management Comments
- The fiscal year 2024 has been transformative, marked by remarkable progress and strategic advancements that position us strongly for future growth.
- Our strategic acquisitions have played a pivotal role in this journey.
- Innovation remains at the heart of Vection.
- Our strategic focus on high-impact, technology-driven projects has yielded impressive results.
- Our strategy centres on seizing low-hanging opportunities to establish customer relationships and drive the 3D digital revolution.
- Our financial performance for FY24 demonstrates the success of our strategic initiatives.
- This acquisition is expected to be value accretive, further strengthening our financial position and market presence.
- I am particularly excited to welcome Marco Landi, the former global COO of Apple Computer, to our board of directors as part of the TDB acquisition.
- As we move into FY25, Vection is well-positioned to capitalise on market opportunities and technological advancements.
Industry Context
Vection's focus on spatial computing, augmented reality, virtual reality, and artificial intelligence aligns with broader industry trends towards immersive technologies and digital transformation. The acquisitions, particularly TDB's generative AI capabilities, suggest a competitive strategy to enhance product offerings and expand into enterprise markets.
Next Steps
- Completion of the TDB acquisition in Q1 FY25.
- Continued integration and growth of existing businesses to maximize synergies.
- Capitalizing on market opportunities and technological advancements in FY25.
- Maintaining leadership in the global marketplace.
Key Dates
- July 7, 2023: Acquisition of Invrsion S.r.l. announced
- August 8, 2023: Acquisition of MYR S.r.l. announced
- September 25, 2023: Invrsion S.r.l. acquisition completed
- February 12, 2024: $4.9 million contract announced
- February 20, 2024: Multiple contracts totaling $971,000 announced
- April 19, 2024: $500,000 XR naval solution project announced
- May 1, 2024: $2.1 million contract announced
- June 30, 2024: End of fiscal year
- July 27, 2024: Acquisition of MYR S.r.l. completed
- August 29, 2024: Acquisition of The Digital Box (TDB) announced
- September 5, 2024: $2 million placement of ordinary shares announced
- September 30, 2024: Annual report released
- October 28, 2024: Annual general meeting scheduled
Keywords
Vection Technologies, Annual Report, Spatial Computing, Augmented Reality, Virtual Reality, Mixed Reality, Artificial Intelligence, 3D Modeling, Acquisitions, Contracts, Revenue, EBITDA, Financial Performance, Technology, FY24
VR1
Vection Technologies LTD
ASX
Sector: Software & Services
Filings with Classifications
Better than expected
29 June 2025 7:19 PM
Defence Contract Award
- The $4.4 million follow-on supply confirms a successful transition from a proof-of-concept pilot to production delivery, indicating strong client satisfaction and product viability.
- The cumulative revenue from this customer has reached approximately $10 million, demonstrating significant and growing engagement with a top-tier defence contractor.
- The planned approximately $21 million in additional contracted options for FY26-FY30 signals substantial future revenue potential and long-term partnership with a key client.
Better than expected
22 June 2025 7:26 PM
Contract Signing Announcement
- The company secured a significant $2.6 million agreement, which substantially exceeds its $500,000 materiality threshold, indicating a strong new contract win.
Better than expected
16 June 2025 6:53 PM
Strategic Partnership Announcement
- The $520,000 agreement exceeds the company's internal materiality threshold of $500,000, indicating a significant contract.
- The partnership targets high-growth markets, with agricultural robotics projected to reach $48 billion by 2030 and precision farming $24 billion by 2030.
- The modular platform architecture allows for cross-sector deployment, expanding the addressable market beyond agriculture.
Better than expected
9 June 2025 8:01 PM
Investor Presentation
- The company reported a 60% increase in 1H25 revenues year-on-year, indicating strong top-line growth.
- Recurring revenue grew by an impressive 204% year-on-year, demonstrating a shift towards a more stable and predictable revenue model.
- Vection achieved positive adjusted EBITDA in 1H25, a significant improvement from a negative EBITDA in the previous fiscal year, signaling enhanced profitability.
Better than expected
9 June 2025 6:37 PM
Product Launch and Strategic Partnership Announcement
- The launch on AWS Marketplace provides a significant strategic partnership and market reach that is better than a standalone product launch.
- The initial contracted annual recurring revenue of $400,000 from early implementations indicates strong immediate commercial traction.
- The solution addresses a large and growing market opportunity, with the global assistive technology market projected to reach $54.9 billion by 2033.
Better than expected
1 June 2025 6:22 PM
Contract Award Announcement
- The A$1 million defence order exceeds the company's A$500,000 materiality threshold, indicating a significant win.
- The order reinforces an ongoing relationship with a strategic customer, suggesting strong client satisfaction and potential for repeat business.
- The client has already indicated additional significant opportunities, pointing to a robust future pipeline.
Better than expected
28 April 2025 7:30 PM
Placement Announcement
- The company raised more capital than initially targeted, indicating strong investor demand.
Better than expected
27 April 2025 8:02 PM
FY25 Q3 Activity Report
- The company reported positive operational cash flow, a significant improvement from previous quarters.
- Recurring revenue increased substantially, indicating a more stable and predictable revenue stream.
- The company's cash position improved, providing greater financial flexibility.
Capital raise
27 April 2025 7:43 PM
Trading Halt Request
- Vection Technologies is planning a capital raising.
- The capital raising is to support the expansion of its AI business.
- The capital raising is to support the development of new markets.
Capital raise
27 February 2025 9:41 PM
Half-year report
- In FY25 Vection announced the proposed acquisition of The Digital Box ('TDB'), a generative AI specialist, in tandem with a $2m equity raising (ASX: 29 August 2024).
- On 5 September 2024, the Company issued 200,000,000 of ordinary fully paid shares at $0.10 ($2m placement as per announced of 29 August 2024).
Better than expected
27 February 2025 9:41 PM
Half Year Results
- The company's revenue increased by 15% compared to the previous period.
- The company reduced its total debt by $5.4 million.
- Earnings per share improved by 63%.
Better than expected
27 February 2025 9:41 PM
Half-year report
- The company's revenue increased by 14.9% compared to the previous period.
- The loss after tax decreased by 58.7% compared to the previous period.
- Underlying EBITDA turned positive, indicating improved operational efficiency.
Better than expected
27 January 2025 4:33 PM
Quarterly Report
- The company achieved a positive operating net cash flow in a historically weak quarter, which is better than expected.
- The company's revenue growth of 60% half-on-half is significantly better than previous periods.
- The increase in recurring revenue to 34% is a positive sign of business model improvement.
Better than expected
21 January 2025 4:22 PM
Sales Announcement
- The company has exceeded its materiality threshold of $0.5m in revenue with these new sales.
Capital raise
16 January 2025 4:23 PM
Merger Announcement
- Vection issued approximately 143 million new shares as part of the initial consideration for the acquisition.
- Up to 52 million further shares may be issued subject to TDB meeting agreed sales, EBITDA, and balance sheet objectives one year post-acquisition.
Better than expected
8 December 2024 5:35 PM
Contract Wins Announcement
- Vection Technologies secured new contracts exceeding $500,000, surpassing their defined materiality threshold.
Capital raise
28 November 2024 4:19 PM
Annual General Meeting Results
- Resolution 4 approved the issuance of shares to Mr. Jacopo Merli.
Better than expected
24 November 2024 4:19 PM
Corporate Presentation
- Q1 FY25 revenue exceeded expectations with a 32% year-on-year increase, driven by strong demand for Vection's AI and XR solutions.
Better than expected
14 November 2024 6:17 PM
Contract Announcement
- The $0.5 million contract exceeds expectations, demonstrating strong market demand for Vection's AI solutions and validating the strategic acquisition of TDB.
Better than expected
31 October 2024 6:15 PM
Contract Announcement
- The $1.6 million contract significantly exceeds Vection's announcement materiality threshold, indicating better-than-expected results.
Capital raise
28 October 2024 3:35 AM
Extraordinary General Meeting Results
- Share issuances related to the TDB acquisition.
- Issuance of shares to Exchange Capital Advisory Pty Ltd.
- Issuance of free attaching options.
- Issuance of broker options.
Better than expected
20 October 2024 6:57 PM
Partnership Announcement
- The $0.5 million sale of the 'Algho' platform to Dell exceeded expectations, demonstrating strong market demand and the platform's commercial viability.
Better than expected
9 October 2024 8:30 PM
Distribution Agreement Announcement
- The \$3.6 million deal exceeds the company's materiality threshold of \$500,000, indicating a positive outcome.
Delay expected
1 October 2024 5:02 AM
Trading Update
- There was a delay in lodging the annual report for the year ended June 30, 2024, which resulted in a suspension of trading.
Worse than expected
30 September 2024 6:21 PM
Annual Report
- Despite a 30% increase in revenue, Vection Technologies still reported a net loss after tax, indicating that expenses outweighed the revenue growth.
Better than expected
30 September 2024 6:21 PM
Financial Results
- Vection Technologies exceeded expectations with 30% year-on-year revenue growth and a 34% increase in EBITDA.
Capital raise
30 September 2024 6:21 PM
Annual Report
- A $2 million placement of ordinary shares at $0.10 was issued on September 5, 2024.
- Up to circa 55 million Vection shares will be issued if TDB achieves sales and EBITDA objectives and balance sheet valuation targets one year post-acquisition.
Worse than expected
30 September 2024 6:20 PM
Financial Results Correction
- The revised financial results show a significantly larger loss than initially reported, primarily due to adjustments in revenue recognition, share-based payments, and asset valuations.
Better than expected
30 July 2024 6:25 PM
FY24 Q4 Activity Report and Appendix 4C
- The company's cash receipts for Q4 FY24 were better than the prior corresponding period, increasing by 15%.
Better than expected
28 April 2024 7:54 PM
Quarterly Report
- The company's revenue, cash receipts, and contracted revenue all showed significant growth compared to previous periods, indicating better-than-expected performance.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.