Veris Limited (ASX: $VRS) First-half FY24 Results

Veris Limited (ASX: $VRS) has announced its first-half FY24 financial results, reporting a 3% decline in underlying profit before tax to $0.8 million and an 8% decrease in revenue to $48.3 million. The company's strategic shift away from smaller projects towards high-margin work for key clients and larger opportunities, along with economic uncertainty in some geographic markets, contributed to these results. Veris also incurred one-off restructuring costs of $440,000 due to the accelerated strategic focus shift.

Executive Commentary on First-half FY24 Results

Dr Michael Shirley, Managing Director & CEO, stated, 'Veris has consolidated its performance with another solid result in 1H24, maintaining profitability and delivering continued margin improvement amidst some significant strategic shifts within the business. As part of our focus on maximising returns, we've continued our previously articulated shift in focus towards key clients, markets and larger opportunities, where our end-to-end solutions and high value digital offerings are in demand and align with our vision for sustainable growth and improved margins.'

Summary of First-half FY24 Results and Outlook

Veris Limited (ASX: $VRS) reported a 3% decline in underlying profit before tax and an 8% decrease in revenue for the first half of FY24. The company's strategic shift towards high-margin work for key clients and larger opportunities, coupled with economic uncertainty in some geographic markets, impacted the financial results. However, Veris demonstrated strong progress against its Digital Strategy, with revenues from the Digital & Spatial business line increasing to circa 15% of first-half revenue. The company's strong balance sheet, stable cash position, and secured workload in excess of $60 million provide a positive outlook for sustained value creation. Veris remains well positioned in key markets and expects continued improvement in margin as it executes its strategy, focusing on client and project opportunities that deliver increasing margins.