Long term potential top line and margin improvement

We think Veris is a potential long-term opportunity for investors that has come about due to the short-term concerns surrounding the surveying division’s margins. It is our view that this is a distraction from the longer-term potential that the company has which is to become a national leader in a diversified array of services including town planning, high margin geospatial services, communications and other professional services. 

In addition, unlike many companies in this market capitalisation range, Veris has the benefit of already having a significant revenue base, which was ~A$106m p.a. as per the last financial year. Because of this relatively large revenue base, even an incremental improvement in existing margins in surveying could produce a material improvement in the group’s total EBITDA.