292,170,060 shares on issue.
Market cap at 0.065 cents is $18,991,053
eps...1.01
PE 6.44
Revenue $91.94 mil.
Verbrec Limited (VBC) is an engineering, asset management, project delivery, operations & maintenance, training and mining technology service provider that supports customers across Australia, New Zealand, Papua New Guinea and beyond. The Company serves the energy, infrastructure, and mining industries through their technical specialties; asset management, automation and control, pipelines, power, process plant and training, with capabilities that span across the entire life cycle of an asset.
From DMX newsletter;
Verbrec (ASX:VBC) – profit and cash-flows, with dividends coming
Engineering contractor VBC, which has a focus on renewable and transitional energy, confirmed a stronger second half
after a disappointing first half, putting it on an $8m EBITDA / $5m NPAT run-rate, notwithstanding the Australian and
US elections disrupting client demand during the year. We would expect a less disruptive, and stronger, FY26. With a
market cap of <$20m, ~$6m in franking credits, $10m of tax benefits, an emerging software asset (which is being
monetised with BHP its inaugural customer), and entering FY26 trading on a PE of <4x, we believe VBC is significantly
mis-priced and represents compelling value. We are pleased to have become a substantial shareholder here. Much like
RPM, we believe VBC can double its market cap and still be very cheap.
Thanks for highlighting this company Lorraina.
The part that concerns me is there cash flow. Whilst making a profit, there operating cash flow after lease payments is negative in H1 and FY24. They are seemingly have to borrow to fund premises.
What gives?
From RAAS Research as a Service report.
Business Update
Other than the announcement of contract wins, t he key takeaways from the business update are:
Solid profit performance expected for the half – After a challenging end to 1HFY25 whereby it
appears one or two material near - term contracts with early stage revenue components were not
awarded late in the period, management stated project delays were impacting pipeline conversion
for the second half . Although it's likely that that revenue has been impacted, management has now
stated that it 'expects a solid profit performance for the half, exceeding the EBITDA and NPAT results'
of the two preceding half - year periods. In our view , this is clear validation for the cost and operating
disciplines the management team has focused on implementing over the past two years.
Continuation of improving cash and balance sheet position – There was no numeric cashflow or
balance sheet detail provided in the update, but management stated 'Verbrec continues to improve
its cash position and strengthen its balance sheet'. This suggests cash conversion continues to be
strong and we assume there will be further debt reduction over the half. As at 31 December, VBC
had net debt of $1.5m . Our forecasts see this reversing to a 30 June 2025 net cash position of $1. 0 m.
Again, a solid outcome in a challenging environment.
Some good price movement albeit on low volume
10c early doors. Thanks for alerting me to this company - it was great buying at mid 6c. Just should have got more.
Quote from: lorraina on Jun 24, 2025, 05:31 PM292,170,060 shares on issue.
Market cap at 0.065 cents is $18,991,053
eps...1.01
PE 6.44
Revenue $91.94 mil.
Verbrec Limited (VBC) is an engineering, asset management, project delivery, operations & maintenance, training and mining technology service provider that supports customers across Australia, New Zealand, Papua New Guinea and beyond. The Company serves the energy, infrastructure, and mining industries through their technical specialties; asset management, automation and control, pipelines, power, process plant and training, with capabilities that span across the entire life cycle of an asset.
From DMX newsletter;
Verbrec (ASX:VBC) – profit and cash-flows, with dividends coming
Engineering contractor VBC, which has a focus on renewable and transitional energy, confirmed a stronger second half
after a disappointing first half, putting it on an $8m EBITDA / $5m NPAT run-rate, notwithstanding the Australian and
US elections disrupting client demand during the year. We would expect a less disruptive, and stronger, FY26. With a
market cap of <$20m, ~$6m in franking credits, $10m of tax benefits, an emerging software asset (which is being
monetised with BHP its inaugural customer), and entering FY26 trading on a PE of <4x, we believe VBC is significantly
mis-priced and represents compelling value. We are pleased to have become a substantial shareholder here. Much like
RPM, we believe VBC can double its market cap and still be very cheap.
Great call, its only gone up since your post.
A great call and more gains to come I'm expecting. Already up 49% - thanks!
The Australian small cap sector appears to becoming to life again after being dormant for the last 2 or 3 years.
This week there were good updates from AMO and LBL.
I recently bought back into ACF, HCL,and PPL.
I have also added SEN to my porfolio,but think I may have made a mistake buying them,although they last traded at 2 cents compared to my buy price of 1.7 cents.
Solid result. Small dividend announced. Trading at a PE of 6.8x seems cheap to me.
https://announcements.asx.com.au/asxpdf/20250828/pdf/06ngtmdlr0fq80.pdf
Quote from: lorraina on Jul 27, 2025, 10:12 AMThe Australian small cap sector appears to becoming to life again after being dormant for the last 2 or 3 years.
This week there were good updates from AMO and LBL.
I recently bought back into ACF, HCL,and PPL.
I have also added SEN to my porfolio,but think I may have made a mistake buying them,although they last traded at 2 cents compared to my buy price of 1.7 cents.
You have to laugh at yourself sometimes.
Seems I have to do it more than I would like.!
My high conviction stock was ACF.Sold as I did not like their result.Broke even.
The company I thought I made a mistake buying SEN is trading at 2.4 cents up 41%..?? lol,
Investor presentation.
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02987674-6A1281467&v=c2533a54e2514fb77a8f93f84db686e1125273e9
More on my "mistake" buy SEN.
https://stockhead.com.au/tech/senetas-builds-cash-war-chest-and-doubles-down-on-sovereign-cybersecurity/
Will know on Thursday about the material commercial agreement..'
Trading halt pending a "material commercial agreement"
Hopefully this puts a rocket under the share price.
Sale of the training business for $11.5m cash. No information on how much this contributed to profit and FCF though :-\
From the annual report
Training segment
$7.6m Revenue
$1.9m EBITDA
Seems to be a very good sale for VBC.
VBC's market cap is currently $27.756 mil, which the Competency Training will add $11.5 mil cash to VBC's coffers for core expansion.
I am in two minds about this sale. This training division was the part that delivered revenue and ebitda growth last year.
Quote from: lorraina on Sep 10, 2025, 12:27 PMSeems to be a very good sale for VBC.
VBC's market cap is currently $27.756 mil, which the Competency Training will add $11.5 mil cash to VBC's coffers for core expansion.
[/quoteQuote from: Dolcile on Sep 10, 2025, 01:13 PMI am in two minds about this sale. This training division was the part that delivered revenue and ebitda growth last year.
The market liked the announcement pushing the share price up 1.6cents or 16.2% to finish at 11.5 cents.
From DMX's newsletter today;
Another company that announced the payment of a dividend (after a 12-year gap) was Verbrec (ASX:VBC).
After many years carrying significant debt, following a strong second half, VBC ended the year in a net cash
position. VBC's new leadership team has reset its overhead cost base and significantly improved gross margins
and cash flow. Strong tailwinds in VBC's core focus areas of gas, defence and renewables we expect to drive a
10%+ increase in revenue in FY26. In addition, VBC's high margin digital twin software product, StacksOn, which
counts BHP as a major customer, has the potential to expand globally in FY26. Despite all this good news, the
market's response to the VBC report was muted with its share price relative flat for the month. VBC finished
the month on an annualised PE of 4x, a net cash balance sheet, and with no value being attributed to its
software product. With VBC back now paying dividends, we believe it represents a very attractive set-up
heading into FY26. We see no reason why VBC should not at least double its multiple from here, with additional
upside if VBC was to further monetise or even sell its StacksOn business.
Seems like a good acquisition to me!
https://stocknessmonster.com/announcements/vbc.asx-6A1295593/
Very nice!
VBC mgmt to be interviewed on coffee microcaps today at 1pm.
RaaS Research sponsors the Coffee Microcaps Webinar on Friday, December 5th, from 11:00 a.m. to 11:30 a.m. AEDT.
Total 0.5-hour webinar.
One ASX microcap company will present their story for 20 minutes, followed by a 10-minute Q&A session.
Coming up next, we have
Mark Read, CEO of Verbrec Ltd (ASX: VBC) 11.00-11.30
Register now.
See you there!
Mark
https://www.youtube.com/redirect?event=channel_description&redir_token=QUFFLUhqa2hXZ3g0Zm00R1pvV2NrRzFCckJlaEV1RjVqZ3xBQ3Jtc0trMzk1djlmREdXY2ZXcXRBTzdVOXM3Y096SnNYNjdQVFZCRFJrZVJ2dU9HZ09GcW1PYWQtWF9MUnl5VkhQMkhwcUVLQ1dNXzd5LUkwcUhZb2NndWtjZnY3cDFOTDh0STVMdHVJbGM3MDBReDVpMXlZYw&q=www.coffeemicrocaps.com
From DMX's latest newsletter;
Key contributors included Verbrec which rose 26% on the back of its highly accretive acquisition of Alliance
Automation from Telstra. Having materially strengthened its balance sheet following a non-core divestment, and
with its expanding income stream and synergy opportunity with the Alliance acquisition, Verbrec remains an
attractive set-up for the portfolio on a single-digit earnings multiple.
15 December 2025
Verbrec's recent webinars and interviews
Verbrec Limited (ASX : VBC) (Verbrec or the Company) is a leading engineering, asset
management, project delivery, operations & maintenance, industrial automation,
digital transformation and mining technology service provider that supports customers
across Australia, New Zealand, Papua New Guinea and beyond.
Verbrec's Chief Executive Officer, Mark Read, recently presented at a Coffee
Microcaps Webinar Event hosted by Mark Torbin.
Mark Read also participated in an interview with RAAS Research Group's Senior
Analyst, Graeme Carson.
The events cover Verbrec's background, competitive differentiator, the divestment of
Competency Training and the acquisition of Alliance Automation.
The recordings can be found on Verbrec's Investor Hub at the following links:
Coffee Microcaps Webinar: https://investors.verbrec.com/announcements/7293225
RAAS Research Group Interview: https://investors.verbrec.com/link/y05WVe
VBC heading north. Loving the progress they've made over the last 6-12 months and the constant flow of news.
I just wish I'd bought a few more back in June, 6.7c was good buying!
Sold VBC recently and put funds into Mat.ax
may regret that.
What's the juice on MAT?
Quote from: Dolcile on Dec 31, 2025, 12:49 PMWhat's the juice on MAT?
Just adding some exposure to gold
I think gold is consolidating here and will run again.
From today's DMX newsletter.
Verbrec (ASX:VBC)
VBC is a national engineering and infrastructure services business with a focus on energy transition. Since his
appointment in 2023, ex-Sedgman CEO Mark Read has delivered an impressive turnaround, emphasising profitable
contracts and selling non-core assets at attractive prices. The recent acquisition of Alliance Automation expands VBC's
capabilities in automation, digitisation, machine learning and cyber security, enabling the company to deliver services
across the full asset lifecycle and across a broader range of industries. VBC trades on a single-digit earnings multiple,
which we believe significantly undervalues the business given its scale, diversification and national footprint. We note
that since we drafted this summary for UTTR in early December, the VBC share price has increased ~50% through
December, but we continue to like the upside here.
Where is our HY report ?
Should be out this afternoon.