Spatial data player Veris Limited (ASX:VRS) was down -3.33% in line with a larger decline of -0.41% for the industrials sector on Tuesday afternoon despite announcing a new 3Y government contract win.
Shares were trading at 5.8cps near 1.30pm AEDT on Tuesday – a slight decline from 6.2cps reached earlier in the day. The stock is marked by illiquidity.
The contract Veris announced on Tuesday will see it producing a 3D model of”the State of Victoria” using highly accurate spatial data – something of an Australian state government trend where those 3D models are called “digital twins.”r
Despite a cyber arts and cultural bent being highlighted in the psuedo-events orchestrated by government to announce such things, the products are typically used to inform development and planning decisions.
Not that this journalist’s cynicism matters for shareholders in Veris – “the services to be provided under the appointment are expected to be significant in value,” the company wrote on Tuesday.
However, it did not give an expectation of revenue at the time.
“As the full scope of the services will evolve over the period of the appointment the final value of the contract cannot be disclosed at this stage,” Veris wrote on Tuesday.
“As other Government agencies across the country continue to recognise the importance of the emerging digital twin landscape and increase their investment in the creation and updating of their digital twins, we will continue to see the pipeline of our opportunities expanding.”
I’d make a quip here about one hoping a company would at least have a rough idea based on a solid and clear tender, but after all, it’s a government contract.
At any rate, CEO Michael Shirley was predictably bullish on today’s news.
“This win is closely aligned to our digital strategy, and we are thrilled to embark on this transformative journey with Digital Twin Victoria,” Shirley said.
VRS last traded at 5.8cps.