Verbrec turns new leaf in its transformation
Verbrec has completed a key step as part of its evolution into a leading mid-tier engineering, infrastructure and training firm in its own right. It’s a milestone underpinned by record work-in-hand due to the huge investment in energy transition and digitalisation of the economy.
The full integration of LogiCamms and OSD into Verbrec (ASX:VBC) branding signals the company is now outgrowing the identities of its wholly owned subsidiaries, which have been leaders in their own markets.
Verbrec’s fresh and fully integrated branding represents not just the growth it’s looking forward to next year, but a firm focus on supporting the transition to net zero by 2050 and the rapid digitisation of Australian industry.
CEO and MD Linton Burns commented: “LogiCamms has been synonymous with electrical and control systems, whereas OSD has been synonymous with Pipelines, though both were well-established in delivering specialist services to the energy, infrastructure and mining industries.”
Burns said that since acquiring LogiCamms and OSD two years ago Verbrec had become a leading mid-tier engineering, asset management, infrastructure and training company operating across the entire asset life cycle.
“Verbrec has now become the leading mid-tier service provider by continuously growing our service offerings and expanding our capabilities across engineering, asset management, infrastructure and industry training,” he said.
“We do this by building long-term client relationships based on trust, upskilling both our and our client’s people and leveraging emerging technologies, thereby remaining at the forefront of an ever-changing industry.
“We have now developed many more capabilities and service offerings that are not reflected in the LogiCamms of OSD brands and that’s why we’re no longer using them as trading names,” he said.
“Our evolution is also reflected in the logo we use across the entire business of interlocking leaves – a sign that we’re fully integrated and looking ahead to the clean energy future.”
The common theme across each of relevant to industry’s rapidly evolving needs, including engineering a digitised, net zero carbon future.
Examples of projects Verbrec has been or is involved with include executing a decommissioning project for a gas field; control systems for the plant providing hydrogen for the first shipment and design of a hydrogen refuelling station.
Its projects related to transforming assets for a smarter future include control system upgrade projects for major Australian utility companies.
Verbrec has additionally developed and commercialised its own stockpile inventory management software solution StacksOnTM which is used by mining giant BHP (ASX:BHP) to drive greater efficiencies at its iron ore operations in Western Australia.
Verbrec’s leading-edge engineering, asset management, infrastructure services are complemented by its training business.
This offers opportunities for both Verbrec’s ~860 valued team members and its clients’ people to upskill for the net zero and rapidly digitising economy.
After closing out two poor performing legacy projects this year, Verbrec now has higher margin generating $81.5m work in hand, with historical highs in the key growth sectors of the energy and digital industries.
Among other highlights of this year’s annual report was a 32.1% increase in gross profit to $35.4m, a whopping 900% lift in earnings and a 24.6% surge in revenue to $121.4m.
Significantly, the leading mid-tier engineering, infrastructure and training service won more work during FY22 than it derived in revenue.
In another sign of confidence in the company, it also go an increase in finance facilities to $23.8m and greater flexibility from its new banking partner Westpac and is looking forward to making the most of those opportunities.
This article was developed in collaboration with Verbrec, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.