VR1
Vection Technologies LTD
ASX
Half Yearly Report and Accounts
Sentiment:
Half-year report
27 February 2025 9:41 PM
Vection Technologies Ltd reports a 14.9% increase in revenue to $12.56 million and a reduced loss of $3.73 million for the half-year ended December 31, 2024, driven by advancements in AI and XR technologies.
Better than expected
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.
Capital raise
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).
Summary
- Vection Technologies Ltd's revenue increased by 14.9% to $12.56 million for the half-year ended December 31, 2024.
- The loss after tax attributable to owners decreased by 58.7% to $3.73 million.
- The Group's EBITDA loss improved to $2.341 million, with an underlying EBITDA profit of $55,000.
- An impairment charge of $92,000 was taken for expected credit losses.
- The company secured a $3.6 million XR software agreement with Cometa and a $1.6 million contract with Brexia Med.
- Vection partnered with Dell Technologies, securing an initial sale of $0.5 million for the Algho AI platform and an additional $0.5 million Dell Algho Appliance deal.
- A $0.7 million contract was secured with KIOSK Embedded Systems.
- Vection acquired The Digital Box (TDB), a generative AI specialist, in tandem with a $2m equity raising.
- The company reported net tangible assets per ordinary security of negative $1.16.
Sentiment
Score: 7
Explanation: The sentiment is cautiously positive due to increased revenue, reduced losses, and strategic partnerships, but concerns remain regarding the company's going concern status and negative net tangible assets.
Positives
- Revenue increased by 14.9% to $12.56 million.
- Losses significantly reduced by 58.7% to $3.73 million.
- Underlying EBITDA turned positive at $55,000.
- The company secured several significant contracts in healthcare, education, and defence.
- Strategic partnerships with Dell Technologies and KIOSK Embedded Systems were established.
- The acquisition of The Digital Box is expected to boost cross-selling opportunities.
- The company is expanding its presence in the EMEA region.
- Key board changes have introduced technology leadership and capital markets experience.
- Total liabilities have significantly reduced compared to the previous year, decreasing from $36,651,000 to $31,267,000.
Negatives
- The Group still reported a loss of $3.73 million for the half-year.
- The Group's EBITDA was a loss of $2.341 million.
- The financial statements include a paragraph addressing a material uncertainty related to going concern.
- Net tangible assets per ordinary security are negative at $1.16.
- Current liabilities exceed current assets by $6,972,000.
Risks
- The auditor's review report includes a paragraph addressing a material uncertainty related to going concern.
- The Group's ability to continue as a going concern is dependent on achieving revenue targets, improving gross margins, and reducing costs.
- The Group may require additional financing facilities, which may not be available.
- The material business risks that could adversely affect the Group's financial performance and growth potential in future years were detailed in the Annual Report at 30 June 2024.
Future Outlook
Vection plans to continue scaling its AI-driven XR solutions, aiming to offer subscription-based models to an expanding international client base, and strategic alliances are set to accelerate the adoption of generative AI, 3D visualisation, and immersive capabilities across various sectors.
Management Comments
- By building on a now-proven ability to deploy advanced AI and XR tools in complex settings, Vection is well positioned to capture opportunities where data-driven innovation, user interactivity, and operational efficiency converge.
- The company remains focused on delivering shareholder value through scalable technology offerings, strategic partnerships, and ongoing enhancements to its INTEGRATEDXR ecosystem.
Industry Context
Vection's focus on AI and XR solutions aligns with the growing demand for digital transformation technologies across various industries, including healthcare, defence, retail, and manufacturing.
Comparison to Industry Standards
- It is difficult to compare Vection directly to industry standards as it is a small cap company in a rapidly evolving industry.
- Larger companies such as Unity Technologies and PTC Inc. are comparible but are much larger and more established.
- Vection's focus on IntegratedXR solutions and strategic partnerships with companies like Dell and DigiLens is a common strategy in the industry to expand market reach and enhance product offerings.
Stakeholder Impact
- Shareholders may see potential for future growth due to increased revenue and strategic acquisitions.
- Employees may benefit from the company's expansion and new partnerships.
- Customers can expect enhanced solutions and services through the integration of AI and XR technologies.
- Suppliers may see increased business opportunities as the company expands its operations.
- Creditors should be aware of the material uncertainty related to the company's going concern.
Next Steps
- Continue scaling AI-driven XR solutions.
- Offer subscription-based models to an expanding international client base.
- Accelerate the adoption of generative AI, 3D visualisation, and immersive capabilities through strategic alliances.
- Focus on delivering shareholder value through scalable technology offerings, strategic partnerships, and ongoing enhancements to its INTEGRATEDXR ecosystem.
Key Dates
- 7 June 2023: Vection acquired Invrsion (ASX: 7 June 2023).
- 8 August 2023: Vection acquired MYR (ASX: 8 August 2023).
- 12 February 2024: Vection secured a $4.9m cybersecurity contract (ASX: 12 February 2024).
- 19 April 2024: Vection secured a $500k XR naval solution (ASX: 19 April 2024).
- 30 June 2024: Annual Financial Report of the Company for the year ending 30 June 2024.
- 29 August 2024: 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).
- 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).
- 10 October 2024: A $3.6m XR software agreement with Cometa (ASX: 10 October 2024) provided immersive solutions to 500 Italian high schools.
- 28 October 2024: Shareholders approved the acquisition of TDB.
- 1 November 2024: A $1.6m contract with Brexia Med (ASX: 1 November 2024) streamlined patient screening.
- 11 November 2024: The Company issued 270,000,000 listed options at exercise price of $0.018 and expiry on 11 November 2027.
- 15 November 2024: An additional $0.5m Dell Algho Appliance deal (ASX: 15 November 2024).
- 20 November 2024: A $0.7m contract with KIOSK Embedded Systems (ASX: 20 November 2024) implemented Algho Avatar technology into patented kiosk designs.
- 9 December 2024: Vection began working with Natuzzi and Nestl (ASX: 9 December 2024) to deliver XR solutions for immersive furniture design and shelf optimisation.
- 17 December 2024: Massachusetts General Hospital launched a clinical pilot using Katherine, a 3D virtual assistant powered by Algho.
- 31 December 2024: End of the financial half-year.
- 6 January 2025: Vection secured a $1.8m defence contract award with a repeat customer.
- 13 January 2025: The Company entered an XR distribution agreement with Synergy in Bulgaria.
- 17 January 2025: Settlement of the TDB acquisition.
- 20 January 2025: Vection announced key Board changes.
- 22 January 2025: Additional Algho AI sales worth $0.5m (ASX: 22 January 2025) contributed to Vections recurring revenue stream.
- 12 February 2025: Vection announced a three-year, up-to-$575k partnership with Assicurazioni Generali.
- 24 February 2025: Vection unveiled a $0.6m SaaS deal with Augmentalix in France.
- 28 February 2025: Date of the report.
Keywords
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 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 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 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.
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.
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.
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.