Vysarn (VYS) H2 2024 earnings summary

Executive summary

• Vysarn delivers vertically integrated water, carbon, and environmental services, targeting growth in resources, urban, government, utilities, and agriculture sectors.

• FY24 marked strong YoY growth, with NPBT rising from $7.10m in FY23 to $11.06m in FY24, and NPAT up 105.6% to $7.96m.

• Acquisition of Waste Water Services (WWS) for $7.5m is >20% EPS accretive, expanding Vysarn's platform and client base.

• Vysarn maintains a robust balance sheet with net cash and a $30m acquisition facility to support further growth.

Financial highlights

• FY24 operational revenue increased 16.7% YoY to $75.89m; EBITDA rose 31.1% to $16.32m.

• NPBT grew 56.3% YoY to $11.06m; NPAT more than doubled to $7.96m.

• WWS contributed FY24 NPBT of $2.24m and NPAT of $1.68m (unaudited).

• All divisions delivered growth, with ProEng EBT up 160% and Pentium Water EBT up 49%.

• Net tangible assets increased 27.4% to $37.66m; NTA per share up 20% to $0.090.

Outlook and guidance

• Management targets continued YoY growth in FY25 via organic initiatives and further acquisitions.

• WWS expected to be a material earnings contributor, with new projects and tenders in pipeline.

• Focus on expanding into East Coast markets, commercial utilities, and new industry sectors.

• Ongoing investment in water asset development in Western Australia, aiming for long-term annuity income.