PriceSensitive

VEEM (ASX:VEE) receives $4.1M in gyrostabiliser orders

Industrial
ASX:VEE      MCAP $250.4M
13 August 2020 06:00 (AEST)
VEEM (ASX:VEE) - Non Executive Chairman, Brad Miocevich

Source: Veem

VEEM (VEE) has received five extra orders for gyrostabilisers, worth US$2 million (around A$2.8 million).

The Perth-based propeller, marine propulsion, fin systems and stabiliser designers and manufacturers supply high-performance systems to commercial workboats, luxury motor yachts, fast ferries and defence industry vessels.

A gyrostabiliser is a device used to reduce the rolling motion of boats and ships in water.

VEEM has already clocked six gyro orders in the first six weeks of this financial year, earning the company A$4.1 million.

In comparison, VEEM’s earnings for last financial year totalled $4.8 million, meaning the company’s off to a roaring start.

The new orders include a third VG1000SD gyrostabiliser, which is destined for an existing 54 metre Damen Expedition and Yacht support vessel, based on the Damen FCS5009.

Innovative Dutch superyacht builder Heesen has also joined VEEM’s list of high-profile clients, along with luxury Italian yacht builder Canados.

Earlier this year, VEEM successfully constructed the world’s largest and most powerful gyrostabiliser for Europe’s largest shipbuilder, Damen Shipyards, which constructs more than 175 vessels annually for customers worldwide.

The company simultaneously launched their new 4000 square metre facility in Canning Vale, which has the capacity to produce over $100 million of gyrostabilisers annually.

VEEM Managing Director Mark Miocevich says he believes the results were a sign of things to come.

“It’s very pleasing to welcome two highly reputable luxury yacht builders as new customers … given the number of enquiries and quotes for VEEM’s gyro’s, we expect that orders will continue to flow,” Mark explained.

“These new orders for a further five gyros validate our decision late last year to expand the gyro facility at VEEM’s Canning Vale premises, providing the capability to scale up and meet customer demand,” he continued.

VEEM closed 11.1 per cent higher with shares trading for 50 cents in a $58.5 million market cap.

Related News