Vysarn eyes FY24 organic, M&A growth

Staff reporter

Australian hydrology drilling and engineering services company Vysarn has posted a 36% higher net profit for FY23 on 40% more revenue and is aiming for “material earnings growth” in the current financial year on the back of organic and possibly further acquisition-led expansion.

The company, which has four operating divisions, increased annual revenue from A$46.3 million to $64.9 million in FY23. NPAT was up to $3.87m from $2.86m the previous year, while EBITDA climbed to $12.45m from $9m in FY22.

Vysarn is looking to expand off its presence in Western Australia’s Pilbara region where large-scale iron ore mining below subterranean water tables is necessitating the removal and disposal of significant water surpluses.

“This thematic has … has provided a unique opportunity to build a business of scale in a short period of time,” management says.

“While Vysarn anticipates continued growth underpinned by the iron ore sector surplus water thematic, the company has also identified new and real avenues for future growth across other services, commodities, sectors and geographies.

“The company is well funded, anticipates material earnings growth and has identified a range of organic and acquisitive growth prospects.”

Vysarn’s net debt was at $1.39m at the end of June this year.

The company is looking to grow subsidiary Pentium Hydro’s dual rotary drill rig fleet after completing a compliance upgrade of existing units in the first half of FY23 and generating better returns from deployed drills in the second half.

ASX-listed Vysarn’s share price is up about 12% in the past month, capitalising the company at circa-$75 million.


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