Veem to meet profit, dividend targets

Canning Vale-based Veem says it will meet its forecast net profit target of $4 million when it reveals its first full-year results as a listed company.

The marine technology company said today that statutory net profit after tax for FY17 would come in line with its prospectus forecast of $4 million, while normalised profit before tax would be $6.1 million, up from its forecast of $5.8 million.

Operating revenue was down from its forecast of $46.7 million to $38.1 million. However, the company has also offset overrun costs associated with its initial public offering, which closed late last year.

Veem, which manufactures and sells marine stabilisation systems, will also maintain its planned dividend payout of 30 per cent of net profit.

The company’s FY17 results will be released late next month.

“We are very pleased with the performance of the company in its first year reporting as a public company,” managing director Mark Miocevich said.

“We have established a long history of reporting profits and returns to shareholders as a private company, and our focus during FY17 was to remain focused on the operations, maintain cash flow disciplines, and to execute the company’s strategy as set out in the prospectus.

“Whilst gyrostabiliser sales were slower than expected, Veem remains confident in achieving sales tractions in the short to medium term for this world-leading product in marine stabilisation.”

Veem began trading on the ASX in October after raising $25 million in its IPO, which was priced at 50 cents a share.

Veem shares were unchanged this morning at 63 cents each.