Marine tech Veem scores gyro contracts from prestigious Italian superyacht builders
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Disruptive marine tech company, Veem (ASX:VEE), has received orders for its gyros from two highly prestigious Italian superyacht builders, Rossinavi and Overmarine.
This takes its total order book to $5 million, which includes $3.5 million to be booked in FY21.
Overmarine is the Italian designer of the famous Mangusta range of superyachts. The kind of superyachts that you can rent for about a quarter of a million a week, like this Mangusta 165:
Mangusta has ordered two VEEM gyros for its new 165 – part of the “Maxi Open” range, about 50m in length. The gyros are what gives the superyachts an exceptionally stable ride.
Meanwhile, Rossinavi has ordered one VEEM gyro for its new superyacht design.
Updating on the market, Veem said the global superyacht construction order book currently sits at 710 vessels as of 1st January 2021, which represents around US$265 million in total addressable market for gyros.
The motor yachts that are being built are in the range of 24-90m, which is the exact size suitable for Veem gyros.
The active fleet size for the the 24m – 90m segment is 9,233 vessels, which grew by 1.7 per cent over the previous year. This represents a potential big market for Veem in retrofitting.
“The superyacht fleet represents a huge market for Veem gyros, both in the new constructions underway and the retrofit potential. Our current sales, while growing rapidly, are only a small portion of the potential within the superyacht, commercial and defence addressable markets.”
Veem was founded in 2011 with the purchase of a local company called Halycon, and installed its first gyro on a superyacht in Sydney in 2015.
Over the years, the company designed three frame sizes covering a range of monohull vessels from 70 tons to 3000 tons, and hold patents on key aspects of the technology.
The company owns over 4,000m2 of dedicated gyro assembly hall that can handle up to $100m of gyros per annum.
Its most significant deal to date is the supply agreement with Damen Shipyards struck in October last year. Damen is the largest small shipbuilder in the world, and the second large shipbuilder in Europe.
Veem said Damen’s adoption of the Veem gyro technology is a major step in terms of acceptance in the large commercial market.
The company has experienced rapid sales growth in the last three years, growing from a revenue of $0.5 million in 2018 to $5 million today.
Its has also projected a strong outlook for 2021, and is expecting bumper sales for its propulsion, defence, and engineering products this year.
Veem’s share price is trading at $1.08 and has risen by 130 per cent over the last 12 months. It commands a market cap of around $128 million at this price.