Leading mid-tier engineering, infrastructure and training service provider Verbrec has had its growth plans revved up via a boost to the size and flexibility of its finance facilities from a Big Four bank.

The agreement with its new banking partner Westpac is a significant vote of confidence in Verbrec (ASX:VBC)’s ongoing turnaround, which is being driven by contracts at the forefront of the rapidly expanding digital industry and accelerating clean energy transition.

Alongside the significant expansion in Verbrec’s overall facilities to $23.8m, the terms of the agreement are generally more  favourable to those that they replace. Combined these terms give Verbrec much greater flexibility to fund its growth goals. These include building on its achievements so far in digital information and clean energy technology at a time of substantial investment in decarbonisation and digital transformation, including the upgrade of control systems.

The inking of the finance arrangement closely follows Verbrec announcing that it can now focus on its record work in hand, which was bid at historically strong margins, while wrapping up the last of its legacy projects.

Verbrec’s managing director, Linton Burns said: “Our previous finance provider has been understanding while the company managed through some historically difficult times, but our focus is now on growth and the new facilities will provide the flexibility required. We are working with Westpac and our previous finance provider to enable an orderly transition between facilities.

“We’re starting the new financial year in great shape and looking forward to growing that further with our improved finance facilities.

“We were already poised for a strong rebound and this new agreement with Westpac will only enhance our ability to leverage our expertise in the digital industry and transition to the net zero future.”

Rebooting its future

One example of Verbrec’s work in hand includes a multi-year licence agreement for its proprietary stockpile monitoring software StacksOn with mining giant BHP.

Under that agreement BHP uses Verbrec’s internally developed software at its giant Western Australian iron ore mines to optimise its operations and improve efficiencies.

Verbrec’s SCADA (supervisory control and data acquisition) upgrade projects are other examples of its expertise in designing and implementing leading-edge technology.

A project on schedule to be finished this year is one of the largest water upgrade projects undertaken in Australia, involving 1200 sites and seven different SCADA control systems.

While this is the last remaining legacy project, the experience it’s given the team of specialist professional engineers in Verbrec’s Perth, Adelaide and Brisbane offices sets it up for future high-value SCADA contracts.

Verbrec is also at the forefront of the clean energy sector through its involvement in, for example, the world’s first shipment of hydrogen from Victoria, a waste-to-energy project, and a hydrogen refuelling station trial in New South Wales.

Verbrec currently has ~730 staff working in Australia and New Zealand servicing those markets along with PNG and the Pacific Islands.

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.

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