2024
VEEM LTD
ACN 008 944 009
ANNUAL REPORT
CORPORATE INFORMATION
ABN 51 008 944 009
Directors
Brad Miocevich
Non-Executive Chairman
Mark Miocevich
Managing Director
Michael Bailey
Independent Non-Executive Director
Peter Torre
Independent Non-Executive Director
Angus Murnaghan Independent Non-Executive Director
Company Secretaries
David Rich
Tino Kapfumo
REGISTERED OFFICE
22 Baile Road
Canning Vale WA 6155
Telephone:
+61 8 9455 9355
Principal place of business
22 Baile Road
Canning Vale WA 6155
Telephone:
+61 8 9455 9355
Share registry
Computershare Investor Services Pty Ltd
Level 17, 221 St Georges Terrace
Perth WA 6000
Telephone:
+61 8 9323 2000
Facsimile:
+61 8 9323 2033
Solicitors
Steinpreis Paganin
Level 4, the Read Buildings 16 Milligan Street
Perth WA 6000
Telephone:
+61 8 9321 4000
Facsimile:
+61 8 9321 4333
Bankers
ANZ Banking Corporation
Level 7, 77 St Georges Terrace
Perth WA 6000
Telephone:
+61 8 6298 3987
Auditors
HLB Mann Judd (WA Partnership)
Level 4, 130 Stirling Street
Perth WA 6000
Telephone:
+61 8 9227 7500
Securities Exchange Listing
VEEM Ltd shares are listed on the Australian
Securities Exchange (ASX: VEE)
VEEM LIMITED 1
Contents
Chairman’s Letter
2
Directors’ Report
4
Consolidated Statement of Profit or Loss and Other Comprehensive Income
20
Consolidated Statement of Financial Position
21
Consolidated Statement of Changes in Equity
22
Consolidated Statement of Cash Flows
23
Notes to Financial Statements
24
Directors’ Declaration
53
Independent Auditor’s Report
54
Shareholders Information
59
CHAIRMAN’S LETTER
2 VEEM LIMITED
Dear Shareholders,
I am very proud to present to you VEEM Limited’s 2024 Annual
Report which reports that the Group produced a record net profit
after tax of $7.0 million from record revenue of $80.6 million.
Last year I reported that the Board was excited for FY24 with
the significant investments made in research and development,
and plant and equipment in FY23 expected to fuel significant
growth, particularly within marine products. I am delighted to
advise that through the hard work and dedication of everyone
at VEEM we surpassed even our own lofty expectations.
The benefit of such investment is evident in our propulsion
division with machines added in FY22 and FY23 available
for the whole of FY24 allowing for a decrease in the backlog
and in lead times, which is pleasing not only for ourselves but
our customers. Our propulsion revenue (including shaftlines
and defence) generated $35.3 million of revenue, up 26%.
The strength of the propulsion division comes from many years
of innovation, and we are determined to continue to create
a platform for growth. In September 2023, VEEM entered into
an exclusive worldwide agreement to partner with Sharrow
Engineering, LLC. Under the agreement Sharrow will design and
VEEM will manufacture and sell SHARROW by VEEM propellors
between 50cm and 5 metres in diameter for inboard vessels.
The award-winning Sharrow design has shown significant
improvements in the outboard market in relation to fuel efficiency,
noise and vibration. In a world where consumers are becoming
more environmentally conscious, the Sharrow provides both
financial and environmental benefits. After passing our internal test
requirements, the new SHARROW by VEEM propellers are now
being carefully rolled out to a small select group of customers as
the first phase. We are excited at the prospects for these designs.
A significant area of growth during the financial year was
in our gyrostabiliser (‘gyro’) division with 18 units sold
(+157%) for revenue of $12.3 million (+146%). This was
driven by our agreement with Singaporean Fast Crew Vessel
manufacturer, Strategic Marine. We have continued to
develop the product and this will culminate in the release
of the Mark II later this year which will come with a 5-year
warranty, demonstrating our confidence in the product.
As has been widely reported, in response to global
tensions, Western nations are ramping up their defence
strategies and bolstering military capabilities, including
through security partnerships such as AUKUS.
With this backdrop, defence continues to be a key area for
VEEM which experienced significant growth in the financial
year with revenue of $20.8m (+23%). We continued to deliver
CHAIRMAN’S LETTER
VEEM LIMITED 3
CHAIRMAN’S LETTER
for existing platforms such as the Collins Class Submarine
sustainment work while also working towards qualifying for
further work on projects such as the Hunter Class Frigate
Program. As a local, defence accredited company able to
manufacture precision cast and machined components, we see
this as a potentially significant area for growth in the coming
years. In particular because of a desire of Australia and allied
countries to maintain sovereign manufacturing capability.
Our core engineering products and services work also
experienced growth during the year. Importantly this area
of our business also feeds into in-house innovation and
technically supports the marine and defence businesses.
During the year we invested over $4.6 million in capital and
development expenditure. The Board remains committed to
investing in the business to keep VEEM at the cutting edge
in an ever-changing world. This is crucial to maintaining
revenue growth and profitability into the future.
In response to the growth of the business over the past few
years, I am very pleased to report that the Board has made a
number of executive appointments to ensure we continue our
momentum and capitalise on new opportunities. In late 2023
Tony Elms was appointed Chief Technical Officer for marine
products. Tony is world renowned for his gyrostabiliser knowledge
and is heavily involved in the roll out of the SHARROW by
VEEM propellers. This was followed by the internal promotions
of Trevor Raman to Chief Executive Officer and Tino Kapfumo
to Chief Financial Officer and Company Secretary. Mark
Miocevich remains as Managing Director and David Rich, the
previous Chief Financial Officer, has taken up the role of Head
of Corporate Development and remains a Company Secretary.
Brad Miocevich
Non-Executive Chairman
8 September 2023
It is also my great pleasure to welcome Angus Murnaghan
to the Board. Apart from being an avid boatie, Angus brings
extensive capital markets experience to the board.
Long time Board member and advisor, Ian Barsden,
retired at the end of the financial year. Ian was a consultant
from 1980 and board member since the IPO in 2016.
Ian was instrumental in guiding VEEM over the decades and
made a significant contribution to VEEM’s current achievements.
Finally, I would like to thank all staff and directors for their
efforts in delivering the incredible growth in 2024 and look
forward to the coming years.
VEEM propellers featured by NautiStyles
Click here to watch
DIRECTORS’ REPORT
4 VEEM LIMITED
The Directors present their report together with the financial statements of the Company and
its controlled entities (“the Group”) for the financial year ended 30 June 2024. In order to
comply with the provisions of the Corporations Act 2001, the Directors report as follows:
DIRECTORS
The names of Directors who held office during or since the
end of the year and until the date of this report are as follows.
Directors were in office for this entire period unless
otherwise stated.
Mr John Bradley Miocevich B.Comm, FAICD
NON-EXECUTIVE CHAIRMAN
Brad has been a Director of VEEM Ltd since 1983. Combining
trade qualifications with a Commerce Degree in Finance and
Banking, Brad has the unique skills suitable for the management
of an engineering company. With a focus on strategic planning,
he was a member of the team responsible for the acquisition of
several companies over the past 25 years including S&S Foundry
& Engineering and Timcast Foundry and Engineering. Taking on
the role of Director Marine Propulsion in 2000, he has been the
driving force in creating VEEM’s now very successful international
propeller business. Brad provided the vision for VEEM’s highly
automated manufacturing processes making VEEM the benchmark
of propeller manufacturing worldwide. Brad brings to the Board
expertise in finance, manufacturing, engineering and marketing
along with practical knowledge of the Company and its markets.
In the 3 years immediately before the end of the financial year,
Brad has not served as a Director of any other listed company.
Mr Mark David Miocevich B.App.Sc (Mech Eng) FIE Aust
MANAGING DIRECTOR
Mark has been a director and senior manager of VEEM for
over 40 years. Commencing as Production Director from 1983
and until 1995 he was responsible for the implementation of
the Quality Assurance systems in 1987, the integration of S&S
Foundry & Engineering into the company in 1989, and defining
the Company management model based on the Australian
Business Excellence framework guideline in 1994. From 1995
until present he has been the Managing Director of VEEM and
for a period during that time, the Managing Director of GA
Perry and a Director of Thomassen Services Australia. He was
responsible for the integration of Timcast Foundry and Engineering
into VEEM during 2002. He brings to the Board intimate
knowledge of the Company, its systems and strategic plan.
In the 3 years immediately before the end of the financial year,
Mark has not served as a Director of any other listed company.
Mr Ian Henry Barsden CA
NON-EXECUTIVE DIRECTOR (RETIRED 30 JUNE 2024)
Ian is a member of the Chartered Accountants Australia
and New Zealand and is a former partner of a mid-tier
accounting firm. Ian brought over 33 years’ experience in
the accounting profession, advising and consulting to a
wide variety of businesses and industries as to business
structuring, taxation and financial management. Ian provided
advisory services to VEEM as a consultant from 1980.
In the 3 years immediately before the end of the financial year,
Ian has not served as a Director of any other listed company.
Mr Peter Patrick Torre B.Bus (Accounting), CA, AGIA
INDEPENDENT NON-EXECUTIVE DIRECTOR
Peter was appointed as a Director of the Company on 12 April
2018. Peter served as Company Secretary of the Company
from September 2016 to November 2019. He is a Chartered
Accountant, a Chartered Secretary and a member of the Australian
Institute of Company Directors. He was previously a partner of
an internationally affiliated firm of Chartered Accountants. Peter
is the Company Secretary of other public companies listed on
the ASX, and Australian subsidiaries of overseas listed entities.
In addition to his role as Company Secretary, Peter is also Chief
Risk Officer of APM Human Services International Limited.
In the 3 years immediately before the end of the
financial year, Peter has served as a Director of Mineral
Commodities Ltd (1 April 2010 to 13 September 2021), Volt
Group Limited (28 April 2017 to present) and Connexion
Telematics Ltd (2 October 2020 to 17 November 2021).
Mr Michael Robert Bailey MSc; CEng; MRINA
INDEPENDENT NON-EXECUTIVE DIRECTOR
Mike brings 50 years’ experience in areas of naval architecture,
marine engineering, and project and company management.
He has operated in the defence and offshore oil and gas
sectors in Europe, Asia and Australia with multinational
and private companies and as a consultant. Mike also held
the Business Development role in VEEM Engineering in
the 1990’s. From 2000 to 2022 Mike was instrumental in
the establishment and operations of the highly successful
Australian Marine Complex - Common User Facility.
In the 3 years immediately before the end of the financials
year, Mike has not served as a Director of any listed
company. Mike has previously served as a director of
AMC Management (WA) Pty Ltd, Facility Manager of the
Australian Marine Complex - Common User Facility.
DIRECTORS’ REPORT
DIRECTORS’ REPORT
Mr Angus Murnaghan BCom - UNSW
INDEPENDENT NON-EXECUTIVE DIRECTOR
(APPOINTED 7 JUNE 2024)
Angus has a Bachelor of Commerce from UNSW and
is a qualified Master Mariner (Class V). Angus is highly
experienced in capital markets and smaller companies
with almost 40 years in the Australian equities markets
in senior roles. He has worked at leading finance and
advisory groups including UBS, Ord Minnett, as Managing
Director of Moelis & Company and Wentworth Securities
including serving on the management committee of UBS.
Currently Angus is a non-executive director of, and consultant
to, diversified investment company Hancock and Gore
Ltd. He was previously a director of emerging project
software provider Total Synergy and served as a Board
member of The Sporting Chance Cancer Foundation.
In the 3 years immediately before the end of the financial
year, Angus has served as a Director of Hancock
and Gore Ltd (23 February 2023 to present).
COMPANY SECRETARIES
Mr David James Rich BCom, FCA, GAICD, AGIA, Grad.Dip.CSP
HEAD OF CORPORATE DEVELOPMENT
AND COMPANY SECRETARY
David is an experienced public company CFO and Company
Secretary with over 35 years commercial experience including
the last 25 years as CFO of ASX listed companies. Over
his career David has worked in senior management for
companies within the technology, manufacturing and oil and
gas industries involving international interests and operations
including in Australia, Europe, Asia, Africa and the USA.
Mr Tino Kapfumo BCom, CA, FGIA
CHIEF FINANCIAL OFFICER AND COMPANY
SECRETARY (APPOINTED 1 JULY 2024)
Tino holds a Bachelor of Commerce from the University of
Western Australia, is a Chartered Accountant and fellow
of the Governance Institute of Australia. He initially gained
experience with both Big 4 and mid-tier accounting firms
dealing with a variety of entities including listed entities and
large private companies with operations both in Australia
and internationally. More recently his experience has been
within small and medium sized ASX listed entities. He has
been VEEM’s Finance Manager for the last 18 months.
VEEM LIMITED 5
DIRECTORS’ REPORT
6 VEEM LIMITED
INTERESTS IN THE SHARES OF THE COMPANY AND RELATED BODIES CORPORATE
The following relevant interests in shares of the Company or a related body corporate were held by the Directors as at the date of this report.
Directors
Number
John Bradley Miocevich
68,135,5931
Mark David Miocevich
68,135,5931
Peter Patrick Torre
72,711
Michael Robert Bailey
115,423
Ian Henry Barsden
53,5712
Angus Murnaghan
400,000
(1) Mr Brad Miocevich and Mr Mark Miocevich have a relevant interest in VEEM Corporation Pty Ltd ATF the Miocevich Family Trust which holds 68,135,593
fully paid ordinary shares in the Company.
(2) As at date of retirement – 30 June 2024.
SHARES UNDER OPTION OR ISSUED
ON EXERCISE OF OPTIONS
At the date of this report there were no unissued ordinary
shares or interests of the Company under option.
PRINCIPAL ACTIVITIES
The principal activities of the Group during
the course of the year were:
•
Production, marketing and sales of propulsion
and stabilisation systems; and
•
Manufacturing bespoke engineered products and
services for the marine, defence and mining industries.
DIRECTORS’ REPORT
REVIEW OF FINANCIAL AND OPERATING PERFORMANCE
FINANCIAL PERFORMANCE
The Board is pleased to report that the FY24 financial result was
a clear step up from FY23 in terms of revenue and profit, even
though there were still some challenges around labour capacity.
The Group reported Net Profit After Tax (NPAT) for FY24 of $7.0
million (2023: $4.1 million) from revenue of $80.6 million (2023:
$59.6 million). Earnings before interest, tax, depreciation and
amortisation (EBITDA) was $14.8 million (2023: $10.0 million).
Cash flow from operations was $8.4 million (2023: $4.7 million).
The revenue increase during the period was driven by significant
increases in propeller sales, a large increase in defence revenue
and accelerated gyro revenue. Propeller sales increased 22% due
to increased capacity available to initially clear a backlog, then
to meet the strong order book. Defence revenue was significantly
higher due to the delivery of the majority of components for a
Collins Class submarine full-cycle docking. Finally, gyro sales
more than doubled as a result of the acceleration in delivery
of the Strategic Marine three-year contract into 15 months.
In addition to revenue of $80.6 million, work in progress
increased by $1.0 million showing an overall activity level for
the Group of $81.6 million for FY24 (2023: $63.5 million).
Net assets increased by $5.5 million to $52.3 million. The Group
held net cash on hand of $0.2 million at 30 June 2024 (30 June
2023: $2.4 million); with undrawn overdraft and trade facilities
of $4.2 million. During the year the Group repaid $4.0 million of
borrowings and acquired over $4.6 million of plant and equipment
and intangible assets (engineering development) including:
•
Three robots - Two replacements and one new
•
A second automated guided vehicle
•
Product Development including gyro engineering
related to product improvement
VEEM spent $4.5 million on formal research and development
projects during FY24. VEEM will continue to commit to
research and development projects as it sees necessary
to remain at the forefront of the markets in which its
products are sold and potentially enter new markets.
During the financial year amounts previously capitalised in relation
to research prototypes for treating liver cancer with multiple heat
sources were amortised resulting in a non-recurring reduction
to pre-tax profit of $0.5 million and post-tax profit of $0.4m.
The non-recurring initial expenses for the Sharrow project of
$0.8m ($0.7m after tax) were also expensed during the year.
VEEM LIMITED 7
DIRECTORS’ REPORT
OPERATIONS
VEEM continued to invest in capital equipment and research and development during the year. Ongoing
initiatives commenced in the prior year improved the retention of staff. Job hours in the financial year were
10% higher than budgeted. These factors facilitated material increases in propeller production and revenue
from engineering products and services.
GYROSTABILISERS
In FY24 VEEM sold 18 gyrostabilisers (“gyros”) (FY23: 7)
generating revenue of $12.3 million (30 June 2023: $5.0
million). The growth was primarily driven by the acceleration
of the Strategic Marine order announced in FY23. At 30 June
2024 VEEM held $3.4 million in orders for gyrostabilisers.
In June 2023 VEEM executed an exclusivity agreement with
Strategic Marine for fast crew boats (FCB) in SE Asia. Under the
agreement, Strategic committed to purchase a minimum of 12
gyros over three years. Strategic subsequently made the VEEM
gyro a standard feature on its high-tech fourth – generation FCB
providing further validation of the value of a gyro in a workboat
environment in terms of safety, efficiency, productivity, operability
and financially. This decision necessitated accelerating the order
for 12 gyrostabilisers which had initially been over 3 years and
resulted in 10 of the 12 being completed and sold in FY24.
The decision by Strategic and evidence of take-up in the small
boat recreational market (smaller than VEEM’s products) provide
confidence that wide adoption of the technology continues and
VEEM is the only manufacturer in the large gyro market with
the products to capitalise on this. VEEM’s marketing efforts in
addition to Strategic’s decision has led to more informed inquiries
from the commercial workboat sector who are realising the
operational and financial benefits of having a gyro on board.
VEEM holds the dominant position as the only major supplier
in the large marine gyrostabiliser market, which is estimated
at US$1.1bn for new builds and US$13.5bn for retrofits.
VEEM continued to invest in the development of its gyrostabiliser
product during FY24 and will release a new version of its range,
the Mark II, later in 2024. With over 50 units now operating in the
field, there have been significant learnings which have all been
incorporated into the Mark II. VEEM’s confidence in the product
has allowed it to now offer a five-year warranty on all sales.
The Gyro service network has continued to mature,
with five technicians now operating around the world
at strategic locations to enhance response times
and lower service costs for gyro customers.
Significant capital investment and intellectual expertise
requirements now provide major barriers to entry for competitors
wanting to get into this large market. VEEM is exploiting this
by driving sales growth and using existing customers as
validation of the benefits in marketing to potential customers.
PROPULSION
Demand for VEEM’s world-leading fixed pitch propellers
continued to be very strong during the year. VEEM’s propulsion
revenue overall (including shaflines and defence) for the
year was $35.3 million, an increase of 26% over FY23, with
VEEM’s propellers alone (excluding conquest and shaft
lines) generating $29.1 million – up 24% on FY23.
This was made possible as a result of installation and
commissioning of three new machining centres in late FY23
which were available for the whole of FY24. These three new
machines followed the addition of two new machines in FY22 with
overall capacity increasing by over 80% since December 2021.
In addition to the machining centres and associated
equipment, VEEM has also invested this year in
additional robotics and equipment to bring further
efficiencies to the propeller manufacturing process.
VEEM continues to develop its processes and pursue new
initiatives and opportunities in relation to the propeller
business where it can leverage its reputation and client
base as the premium product in the market for high-speed,
high-performance propellers. Part of VEEM’s research and
development focus is to continually increase the automation
of the propeller process which not only reduces time and
cost but also, notably in the current environment, reduces the
requirement for highly skilled labour as capacity expands.
8 VEEM LIMITED
VEEM LIMITED 9
DIRECTORS’ REPORT
Agreement with Sharrow Engineering
On 2 October 2023 VEEM announced it had executed
agreements with Sharrow Engineering, LLC (“Sharrow”) for
VEEM and Sharrow to partner together to design and then
VEEM to exclusively manufacture and sell Sharrow propellers
worldwide up to 5 metres in diameter for inboard motor vessels.
The award-winning Sharrow propeller design has made a
significant impact on the outboard motor market with outstanding
improvements in fuel efficiency, noise, vibration and handling.
Under the agreement, VEEM will pay Sharrow a licence fee
based on the sales of the SHARROW by VEEM propellers.
In April 2024, following comprehensive testing, VEEM
formally accepted the test results of the Sharrow designs
which progressed the SHARROW by VEEM relationship
to the next phase of development and rollout.
VEEM will initially manufacture the SHARROW by VEEM propellers
at its plant in Western Australia and these are expected to be
taken up by demand from boat manufacturers and commercial
operators. The roll out has begun with the initial focus being on
a small group of select customers that have pre-ordered online,
with designs optimised and tested for each vessel. The results
from this customer group will be used to prioritise the order of
series development which is the next stage of the rollout.
If the adoption rates follow the same patterns as the
Sharrow outboard motor propellers, then VEEM expects to
be building increased capacity in the next few years.
The target market is propellers below 5 metres in diameter
used for inboard vessels. The main volumes VEEM is targeting
initially are in the 30 – 90 feet (10 – 30m) range where there
are premium production yacht manufacturers who the
Company anticipates will embrace the significantly better
product. Commercial operators are expected to adopt the new
SHARROW by VEEM product for the economic benefits of less
fuel usage and the drive to reduce their carbon footprint.
The overall market is 100,000 vessels which would be in the
order of US$2.6 bn* which includes the new boat market of
15,000 vessels worth in the order of US$338 million* per annum.
The SHARROW by VEEM propellers will cost more to make in
both raw materials and manufacturing time. The selling price
will be at a further premium due to the licence fee payable to
Sharrow. This is expected to lead to a pricing structure that
is at a significant premium to current standard propellers,
however the adoption rates for the outboard motor market
have shown that customers are prepared to embrace the
product at a premium due to the tangible benefits realised.
Underwater noise testing has been conducted with
very encouraging results. This is an area of particular
interest to the defence market and participants looking
at the sustainability of boating and marine life.
DEFENCE
VEEM continues to be a reliable, local source of highly
sophisticated critical components for the Collins Class
submarines. Revenue from the submarine program was $16.6
million for FY24 which is up 35% on FY23 due to the delivery of the
majority of components for a full-cycle docking program in FY24.
Overall defence revenue was $20.8 million, up 23% on FY23.
VEEM is currently working on the Hunter Class Frigate Program
(HCFP) demonstrator blades for BAE Systems Australia. The
value of the demonstrator contract is $1.7 million, with successful
completion of the task expected in H1 FY2025 ensuring VEEM
qualifies as a supplier to the HCFP. VEEM is one of only two
suppliers globally to be able to produce this level of precision.
Success with this project and VEEM’s defence
accreditations is expected to lead to further Australian
defence work as well as the potential to export equipment
for other naval shipbuilding programs around the
world, including other Type 26 frigate programs.
VEEM also continues to be awarded contracts for
numerous other defence projects including army vehicles
and naval projects such as patrol boats (eg. Austal’s
Evolved Cape Class Patrol Boats, ANZAC Frigates).
VEEM is active in the Defence space and is well positioned
to take advantage of further defence work opportunities that
are now emerging from Hunter, Austal, AUKUS, autonomous
vessel and other weapons defence programs, especially
since VEEM now has an enhanced security rating.
*The independent market assessment was conducted by EQC Consulting. The market assessment excludes: vessels over 10 years old;
non-ocean-going commercial vessels; defence vessels; outboards, jets; stern drives; recreational vessels over 90m and under 10m; and
commercial vessels without an IMO number. Valuation is calculated using approximately two times current design prices.
DIRECTORS’ REPORT
10 VEEM LIMITED
ENGINEERING PRODUCTS AND SERVICES
The majority of VEEM’s traditional engineering business is in the
manufacture of foundry-led, precision engineered products. This
comprises both the manufacture of customer’s designs and the
sale and manufacture of VEEM’s own hollow bar product (includes
forever pipe). Demand generally for foundry-led, precision
engineered products was strong throughout FY24 and remains so.
Revenue from VEEM’s hollow bar product for FY24
was $7.1 million which is a 13% increase over FY23
due to strong demand and increased capacity.
The balance of revenue from engineering products and
services was $8.7 million, up 20% from FY23 due primarily
to improved recruitment and retention of staff which has
facilitated additional hours being available to satisfy demand.
CORPORATE
During the year VEEM appointed Mr Tony Elms as Chief
Technical Officer for its marine products. Mr Elms is
world renowned for his gyrostabiliser knowledge and
experience and has also been working on the Sharrow
development since commencing in October 2023.
The implementation of management succession commenced
on 1 July 2024 with Trevor Raman being promoted from Chief
Operating Officer to Chief Executive Officer and Tino Kapfumo
being promoted to Chief Financial Officer and Company Secretary.
Managing Director, Mark Miocevich, continues in that role and
David Rich the previous Chief Financial Officer, has taken up the
role of Head of Corporate Development and remains a Company
Secretary. Refer to the ASX announcement of 27 June 2024.
In addition to executive appointments Angus Murnaghan
was appointed as an independent non-executive director
effective 7 June 2024. Angus adds extensive capital markets
skills and experience to the board. In addition, Angus’
experience and passion for boating and the marine industry
is a valuable attribute given VEEM’s main markets.
In conjunction with Angus’ appointment Ian Barsden announced
his retirement from the Board effective 30 June 2024. Ian provided
advisory services to VEEM as a consultant from 1980 to 2016
when he joined the Board of VEEM Limited as a non-executive
Director prior to the IPO. Ian’s influence was a constant and
reassuring presence, whether in his role as a partner of VEEM’s
accounting firm, as a consultant, or as a dedicated board member
and his service over many years was deeply appreciated.
VEEM has been contributing its knowledge of induction heating
technology in a research project with a Perth liver surgeon for the
treatment of liver cancer for several years. During the financial
year the Board evaluated the project and made the decision to
amortise the full amount related to this project resulting in a one-off
pre-tax reduction in profit of $0.5m ($0.4 million after tax). VEEM is
proud to have been able to use its knowledge and experience to
contribute to this project for the broader benefit of the community.
OUTLOOK
VEEM’s continued investment in capital equipment and research
and development is expected to be maintained into FY25.
The outlook for VEEM’s large marine gyrostabiliser (‘gyro’) product
remains positive with VEEM holding the dominant position as
the only major supplier in the large marine gyrostabiliser market
estimated at US$1.1bn for new builds and US$13.5bn for retrofits
(current fleet). The Board is confident in the product and VEEM
is now providing a five-year warranty, supported by a new
version, the Mark II, being released shortly. This is expected
to receive very positive feedback from both commercial and
recreational customers.
The agreement with Strategic Marine highlights the commercial
market for gyros is becoming better educated at the operational
and HSE levels on the commercial benefits of gyros for crew
transfers. VEEM is currently instigating a stronger marketing
and sales push into the workboat and broader commercial
and defence markets which it expects will keep up the
sales momentum generated in FY24. A separate marketing
strategy is being implemented to drive recreational sales.
VEEM’s propellers continue to be the premium product in
the fixed pitch propeller market globally. Orders on hand,
customer feedback and industry reports all lead VEEM to
expect the global demand for VEEM’s propellers to remain
strong. VEEM has increased its propulsion marketing and
sales team heading into FY25 with the aim of broadening
its geographical spread and also increasing its offerings
to include shaftlines and associated equipment.
The step up in production experienced in FY24 has continued
to date and is expected to be maintained. Margins are
protected against cost increases by regular pricing reviews.
The roll out of the new SHARROW by VEEM propeller product
has begun with the initial focus being on a small group of select
customers that have pre-ordered online, with designs optimised
and tested for each specific vessel. The results from this customer
group will be used to prioritise the order of series development
which is the next stage of the rollout.
VEEM expects to generate modest revenue from sales in FY25
as the series designs are developed with sales increasing
into FY26. If the adoption rates follow the same patterns as
the Sharrow outboard motor propellers, then VEEM expects
to be building increased capacity in the next few years.
VEEM LIMITED 11
DIRECTORS’ REPORT
Defence revenue is expected to remain strong in FY25,
weighted to 2HFY25 with deliveries for the current Collins Class
submarine full cycle docking program being completed in
Q1 FY25. Other defence work for a number of different prime
contractors, including Austal, is also expected to continue
with the building of patrol boats and other platforms.
VEEM will deliver on the Hunter demonstrator program in
1HFY25 and will pursue other options to leverage the high-level
qualifications achieved with BAE/Kongsberg/Navy to supply
other defence programs including overseas T26 programs.
VEEM is also active and well positioned to take advantage
of further defence work opportunities that may arise
out of AUKUS and other defence programs.
Demand for the traditional foundry-led engineering products
and services is expected to continue. This includes
continued growth in VEEM’s hollow bar product.
VEEM will continue to focus heavily on recruitment, maintenance
and increase in labour resources through a number of initiatives
in order to ensure it has the capacity to deliver revenue growth.
In terms of cost increases, VEEM has in place systems to
ensure that cost increases and other factors such as exchange
rates are identified as early as possible and incorporated
into pricing in order to protect margins for all products.
STRATEGY
VEEM’s strategy and focus is to become the global market
leader in the provision of gyrostabilisation to superyachts and
large commercial craft while growing its position as a premier
supplier of world leading fixed pitch propeller technology.
VEEM will also continue to manufacture bespoke
specialised engineered products and services for the
marine, defence, resources and other industries.
KEY RISKS
VEEM’s ongoing business performance is subject to
a number of risks. The key risks identified are:
•
Changes in the market demand for VEEM’s products or
services. This includes the impact of changing global
economic conditions in markets such as the recreational
marine market which is a major consumer of VEEM’s
propellers. VEEM monitors its markets for indicators
of any change and devises plans to respond. VEEM
proactively works to keep its products at the forefront
of its markets both technically and price-wise.
•
Rising input costs such as raw materials; freight and labour
impacting margins. VEEM has in place systems to ensure
that cost increases and other factors such as exchange
rates are identified as early as possible and incorporated
into pricing in order to protect margins for all products.
•
Availability of labour in Western Australia
impacting capacity. VEEM has in place a
number of initiatives to manage this risk.
•
The rate of adoption of the Company’s large marine
gyrostabiliser technology impacting revenue and
profit growth. VEEM is working to maximise the
adoption of its gyrostabiliser technology through
marketing, pricing and after-sales attention.
DIRECTORS’ REPORT
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Other than disclosed elsewhere in this report, there
have been no significant changes in the state of
affairs of the Group to the date of this report.
SIGNIFICANT EVENTS AFTER BALANCE DATE
No matters or circumstances have arisen since the end
of the financial year which have significantly affected or
may significantly affect the operating of the Group, the
results of those operations, or state of affairs of the Group
in future financial years apart from those listed below:
On 21 August 2024 the Company declared an unfranked ordinary
dividend of $1,045,425 representing $0.0077 per share.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
The Group will continue with its strategy as set out above.
ENVIRONMENTAL LEGISLATION
The Group is not subject to any significant environmental legislation.
DIVIDENDS
Dividends paid to members during the financial year were
as follows:
A final unfranked ordinary dividend of $692,169 was paid
on 20 September 2023 in relation to the 2023 financial year.
An interim unfranked ordinary dividend of $1,045,040 was paid
on 17 April 2024.
Since the end of the financial year the Directors have
recommended the payment of a final unfranked ordinary dividend
of $1,045,425 ($0.0077 per share) to be paid on or around 20
September 2024. The recommendation is based on 30% of the net
profit after tax less the interim dividend of $1,045,040 already paid.
INDEMNIFICATION AND INSURANCE OF
DIRECTORS AND OFFICERS
The Company has agreed to indemnify all the Directors of
the Company and the Chief Financial Officer for any liabilities
to another person (other than the Company or related body
corporate) that may arise from their position as Directors or
officers of the Company and its controlled entities, except where
the liability arises out of conduct involving a lack of good faith.
During the financial year the Company paid a premium in respect
of a contract ensuring the Directors and officers of the Company
and its controlled entities against any liability incurred in the
course of their duties to the extent permitted by the Corporations
Act 2001. The contract of insurance prohibits disclosure of
the nature of the liability and the amount of the premium.
REMUNERATION REPORT - AUDITED
This report, which forms part of the Directors’ report,
outlines the remuneration arrangements in place for the
key management personnel (“KMP”) of VEEM Ltd for the
financial year ended 30 June 2024. The information provided
in this remuneration report has been audited as required
by Section 308(3C) of the Corporations Act 2001.
The remuneration report details the remuneration arrangements
for KMP who are defined as those persons having authority and
responsibility for planning, directing and controlling the major
activities of the Company, directly or indirectly, including any
Director (whether executive or otherwise) of the Company.
12 VEEM LIMITED
VEEM LIMITED 13
DIRECTORS’ REPORT
KEY MANAGEMENT PERSONNEL
The Key Management Personnel set out below were the only key
management personnel of the Group during or since the end of
the financial year.
Directors
John Bradley Miocevich
Chairman (Non-Executive)
Mark David Miocevich
Managing Director
Ian Henry Barsden
Non-Executive Director (Retired 30
June 2024)
Angus William Murnaghan
Independent Non-Executive Director
(Appointed 7 June 2024)
Peter Patrick Torre
Independent Non-Executive Director
Michael Robert Bailey
Independent Non-Executive Director
Executives
Trevor Raman
Chief Executive Officer
(promoted from Chief Operating
Officer on 1 July 2024)
Tinotenda Alfred Kapfumo
Chief Financial Officer and Company
Secretary (Appointed 1 July 2024)
David James Rich
Head of Corporate Development
and Company Secretary (Ceased as
Chief Financial Officer and KMP on
30 June 2024)
David James Wood
Global Commercial Manager
(Resigned 13 October 2023)
The named persons held their current positions for the whole of the
financial year and to the date of this report unless otherwise stated.
REMUNERATION PHILOSOPHY
The performance of the Group depends upon the quality of
the Directors and executives. The philosophy of the Group in
determining remuneration levels is to set competitive remuneration
packages to attract and retain high calibre employees.
REMUNERATION COMMITTEE
The Group did not have a separate Remuneration and
Nomination Committee during the year. The full Board
fulfilled the role typically undertaken by a Remuneration
Committee and was responsible for determining and
reviewing compensation arrangements for the Directors.
The Board assesses the appropriateness of the nature and
amount of remuneration of Directors and executives on a periodic
basis by reference to relevant employment market conditions with
an overall objective of ensuring maximum stakeholder benefit
from the retention of a high-quality Board and executive team.
REMUNERATION STRUCTURE
In accordance with best practice corporate governance,
the structure of non-executive Director and executive
remuneration is separate and distinct.
USE OF REMUNERATION CONSULTANTS
Independent external advice is sought from remuneration
consultants as required. A Benchmarking Report was
undertaken to ensure the level of remuneration for the
Group’s Managing Director was in line with market and
commensurate with the role being undertaken in July 2021.
NON-EXECUTIVE DIRECTOR REMUNERATION
The Board seeks to set aggregate remuneration at a
level that provides the Group with the ability to attract
and retain Directors of the highest calibre, whilst
incurring a cost that is acceptable to shareholders.
The ASX Listing Rules specify that the aggregate remuneration
of non-executive Directors shall be determined from time to time
by a general meeting. The Constitution of the Company as at
the time of listing in October 2016 provides that the aggregate
remuneration of non-executive Directors be set at $400,000.
The amount of aggregate remuneration sought to be
approved by shareholders and the manner in which it is
apportioned amongst Directors is reviewed annually leading
up to the Company’s Annual General Meeting. The Board
considers advice from external shareholders as well as
the fees paid to non-executive Directors of comparable
companies when undertaking the annual review process.
Each Director receives a fee for being a Director
of the Company. Given there are no committees
currently in place, no additional fees are paid.
DIRECTORS’ REPORT
14 VEEM LIMITED
SENIOR MANAGER AND EXECUTIVE
DIRECTOR REMUNERATION
Remuneration consisted of reasonable fixed remuneration
and a performance rights and option plan during the year.
FIXED REMUNERATION
Fixed remuneration is reviewed annually by the Board.
The process consists of a review of relevant comparative
remuneration in the market and internally and, where appropriate,
external advice on policies and practices. The Board has
access to external, independent advice where necessary.
Senior managers are given the opportunity to receive their
fixed (primary) remuneration in a variety of forms including
cash and fringe benefits such as motor vehicles and expense
payment plans. It is intended that the manner of payment
chosen will be optimal for the recipient without creating undue
cost for the Group. The fixed remuneration component is
detailed in Key Management Personnel remuneration tables
for the years ended 30 June 2024 and 30 June 2023.
PERFORMANCE RIGHTS AND OPTIONS PLAN
The Company issued 150,000 Performance Rights under
its performance rights and option plan to its then Chief
Financial Officer, Mr David Rich in July 2021. 50,000 of these
vested and ordinary shares were issued on 1 May 2024.
In December 2023 the Company issued a further 324,438
performance rights to David Rich (then Chief Financial Officer)
and 307,692 to Trevor Raman (then Chief Operating Officer).
At 30 June 2024 these were the only performance rights on issue
and there were no other performance rights granted or cancelled
during the year. The issue was undertaken under the Company’s
placement capacity pursuant to ASX Listing Rule 7.1 given the
Plan is yet to be approved by shareholders of the Company.
The key terms of the Performance Rights issued are as follows:
FY22 Performance rights
•
50,000 Performance Rights which vest on 24
months from date of issue and upon the 30-day
Volume Weighted Share Price of the Company
being $2.00 or above at any time up to expiry.
•
50,000 Performance Rights which vest on 36
months from date of issue and upon the 30-day
Volume Weighted Share Price of the Company
being $2.50 or above at any time up to expiry.
•
All Performance Rights have an accelerated
vesting condition on a change of control
event at any time up to expiry.
•
All 100,000 unvested Performance Rights
expired on 14 August 2024.
FY24 Performance rights
•
Tranche 1: 12 months after date of issue and
the 5-day volume weighted average share price
(VWAP) of the Company has reached $1.07.
This can occur at any point to expiry.
•
Tranche 2: 24 months after date of issue and the 5-day
VWAP of the Company has reached a price which is
25% higher than the higher of (i) the 5-day VWAP up to
and including the date that is 12 months from the date of
issue; or (ii) $1.07. This can occur at any point to expiry.
•
Tranche 3: 36 months after date of issue and the 5-day
VWAP of the Company has reached a price which is
25% higher than the higher of (i) the 5-day VWAP up to
and including the date that is 24 months from the date of
issue; or (ii) $1.07. This can occur at any point to expiry.
•
All Performance Rights have an accelerated
vesting condition on a change of control
event at any time up to expiry.
•
All Performance Rights expire 11 January 2027.
2023 ANNUAL GENERAL MEETING
The Remuneration Report for the year ended 30 June 2023
was approved by in excess of 97% of shareholder votes cast.
VEEM LIMITED 15
DIRECTORS’ REPORT
PERFORMANCE ON SHAREHOLDER WEALTH
In considering the Group’s performance and benefits for shareholder wealth, the Board have regarded
the following indices in respect of the current and previous four financial years:
2024
2023
2022
2021
2020
EPS (cents per share)
5.15
3.03
0.93
3.78
1.90
Dividends (cents per share)
1.54
0.91
0.43
0.66
0.57
Net profit before tax ($k)
6,986
4,112
1,266
4,911
2,470
Share price ($)
1.75
0.40
0.38
1.33
0.40
EMPLOYMENT CONTRACTS
Details of employment contracts with executive KMP as at the date of this report:
NAME
TERM OF AGREEMENT AND TERMINATION PROVISIONS
BASE SALARY
TERMINATION BENEFIT
M. Miocevich
Managing Director
This agreement has no set term.
Termination of the agreement is 1 months’ notice by the
Executive or 3 months’ notice by the Company and includes
a 6-month restraint of trade.
Base: $549,601 per annum
plus minimum statutory
superannuation
3 Months’ salary
T. Raman
Chief Executive
Officer
This agreement has no set term.
Termination of the agreement is 3 months’ notice by the
Executive or the Company and includes a 6- month restraint
of trade.
Base: $460,000 per annum
inclusive of minimum statu-
tory superannuation
3 Months’ salary
T. Kapfumo
Chief Financial Officer
This agreement has no set term.
Termination of the agreement is 3 months’ notice by the
Executive or the Company and includes a 6- month restraint
of trade.
Base: $270,000 per annum
inclusive of minimum statu-
tory superannuation
3 Months’ salary
Executive remuneration consisted of fixed and variable remuneration during the year to 30 June 2024. The Group continues
to assess the structure of executive remuneration to ensure it appropriately incentivises key management.
DIRECTORS’ REPORT
16 VEEM LIMITED
REMUNERATION OF KEY MANAGEMENT PERSONNEL
Key Management Personnel remuneration for the years ended 30 June 2024 and 30 June 2023:
Short-term employee benefits
Post -
employment
benefits
Long-term
benefits
Share
based
payments
Relative proportions of
remuneration of KMP that
are linked to performance
Salary &
fees
Bonus
Non -
monetary
benefits
Other
Superannuation
Long
service
leave
Total
Fixed
remuneration
Remuneration
linked to
performance
30 June 2024
$
$
$
$
$
$
$
$
%
%
Directors
Bradley Miocevich*
398,172
-
-
-
23,946
-
-
422,118
100%
-
Mark Miocevich
539,051
-
-
-
27,399
(46,197)
-
520,253
100%
-
Ian Barsden
64,810
-
-
-
7,129
-
-
71,939
100%
-
Michael Bailey
64,810
-
-
-
7,129
-
-
71,939
100%
-
Peter Torre
71,999
-
-
-
-
-
-
71,999
100%
-
Angus
Murnaghan**
2,744
-
-
-
302
-
-
3,046
100%
-
Total Director
remuneration
1,141,586
-
-
-
65,905
(46,197)
-
1,161,294
Executive
David Rich
381,827
-
-
-
27,399
6,573
39,449
455,248
91%
9%
Trevor Raman
353,728
-
-
-
27,399
6,210
31,364
418,701
93%
7%
David Wood***
109,154
-
-
-
10,700
-
-
119,854
100%
-
Total Executive
remuneration
844,709
-
-
-
65,498
12,783
70,813
993,803
Total
1,986,295
-
-
-
131,403
(33,414)
70,813
2,155,097
Short-term employee benefits
Post-
employment
benefits
Long-term
benefits
Share
based
payments
Relative proportions of
remuneration of KMP that
are linked to performance
Salary &
fees
Bonus
Non -
monetary
benefits
Other
Superannuation
Long
service
leave
Total
Fixed
remuneration
Remuneration
linked to
performance
30 June 2023
$
$
$
$
$
$
$
$
%
%
Directors
Bradley Miocevich
123,529
-
-
-
12,970
-
-
136,499
100%
-
Mark Miocevich
512,271
-
-
-
25,292
11,294
-
548,857
100%
-
Ian Barsden
61,991
-
-
-
6,509
-
-
68,500
100%
-
Peter Torre
68,500
-
-
-
-
-
-
68,500
100%
-
Michael Bailey
61,991
-
-
-
6,509
-
-
68,500
100%
-
Total Director
remuneration
828,282
-
-
-
51,280
11,294
-
890,856
Executive
David Rich
350,138
-
-
-
25,292
6,832
44,100
426,362
90%
10%
Brett Silich
207,038
-
-
-
14,657
-
-
221,695
100%
-
Trevor Raman
66,432
-
-
-
5,862
5,175
-
77,469
100%
-
David Wood**
65,000
-
-
-
6,323
1,083
-
72,406
100%
-
Total Executive
remuneration
688,608
-
-
-
52,134
13,090
44,100
797,932
Total
1,516,890
-
-
-
103,414
24,384
44,100
1,688,788
*
Mr Bradley Miocevich was engaged as a consultant between September 2023 and April 2024 to work on the licencing agreement with Sharrow Engineering,
LLC and the subsequent performance testing. The fees for this work totalled $268,893 with the balance of $129,279 being the fees paid for the role of Chairman.
**
Mr Angus Murnaghan was appointed as Director effective 7 June 2024.
***
Mr David Wood ceased to be a KMP effective 13 October 2023.
VEEM LIMITED 17
DIRECTORS’ REPORT
FULLY PAID ORDINARY SHARES
Balance at beginning of year
Granted as
compensation
Received on
exercise of rights
Net change other
Balance at
end of year
Balance held nominally
30 June 2024
Number
Number
Number
Number
Number
Number
Directors
Bradley Miocevich*
68,135,593
-
-
-
68,135,593
-
Mark Miocevich*
68,135,593
-
-
-
68,135,593
-
Ian Barsden**
53,571
-
-
-
53,571
-
Angus Murnaghan***
375,000
-
-
25,000
400,000
Peter Torre
72,711
-
-
-
72,711
-
Michael Bailey
115,423
-
-
-
115,423
-
Executive
David Rich
216,316
-
50,000
(142,000)
124,316
-
Trevor Raman
-
-
-
13,783
13,783
-
David Wood**
-
-
-
-
-
-
Balance at beginning of year
Granted as
compensation
Received on
exercise of rights
Net change other
Balance at
end of year
Balance held nominally
30 June 2023
Number
Number
Number
Number
Number
Number
Directors
Bradley Miocevich
68,135,593
-
-
-
68,135,593
-
Mark Miocevich
68,135,593
-
-
-
68,135,593
-
Ian Barsden
53,571
-
-
-
53,571
-
Peter Torre
72,711
-
-
-
72,711
-
Michael Bailey
115,423
-
-
-
115,423
-
Executive
David Rich
216,316
-
-
216,316
-
Brett Silich
-
-
-
-
-
-
Trevor Raman***
-
-
-
-
-
-
David Wood***
-
-
-
-
-
-
*
Mr Brad Miocevich and Mr Mark Miocevich have a relevant interest in VEEM Corporation Pty Ltd ATF
the Miocevich Family Trust which holds 68,135,593 fully paid ordinary shares in the Company.
**
As at date of cessation
***
Beginning balance is at date of appointment
The Group has two lease agreements with Voyka Pty Ltd, an entity controlled by an entity related to Mr Mark Miocevich and Mr Brad
Miocevich. The Group pays Voyka Pty Ltd current monthly rent of $169,419 monthly excluding GST which is exclusive of any outgoings
including rates, taxes, insurance premiums and maintenance costs. The leases end in 2029 and are on commercial terms.
PERFORMANCE RIGHTS
During the year there existed 782,130 performance rights
issued to David Rich and Trevor Raman as remuneration.
150,000 were issued to David Rich in FY22 and 632,130
were issued to David Rich and Trevor Raman in FY24.
50,000 held by David Rich vested and 50,000 fully
paid ordinary shares were issued during the year.
There are no other KMP option or performance right holdings.
OTHER RELATED PARTY TRANSACTIONS
The Group has two lease agreements with Voyka Pty Ltd, an
entity controlled by an entity related to Mr Mark Miocevich
and Mr Brad Miocevich. The Group pays Voyka Pty Ltd
current monthly rent of $169,419 monthly excluding
GST which is exclusive of any outgoings including rates,
taxes, insurance premiums and maintenance costs. The
leases end in 2029 and are on commercial terms.
During the year Mr Mark Miocevich purchased goods
and services worth $7,399 (2023: $57,016). An entity related
to Mr Brad Miocevich provided services of $19,276 (2023:
$2,898) and purchased goods and services worth $1,242 (2023:
$1,964). All these orders were on normal commercial terms
Lumos Marketing, which is owned by a related party of Mr Mark
Miocevich, provided $92,170 (2023: $77,969) of marketing
services to the Group on normal commercial terms.
Qback Pty Ltd, which is part owned by a related party of
Mr Mark Miocevich, provided $13,200 (2023: $nil) of corporate
services to the Group on normal commercial terms.
END OF REMUNERATION REPORT
DIRECTORS’ REPORT
18 VEEM LIMITED
DIRECTORS’ MEETINGS
The number of meetings of Directors held during the year and the number of meetings attended by each Director were as follows:
Meetings Held
Eligible to Attend
Meetings Attended
Number of meetings held:
12
Number of meetings attended:
John Bradley Miocevich
12
12
Mark David Miocevich
12
12
Ian Henry Barsden
12
11
Angus William Murnaghan
1
1
Peter Patrick Torre
12
11
Michael Robert Bailey
12
11
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied for leave of court to bring proceedings on behalf of the Company or intervene in any proceedings to which
the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings.
NON-AUDIT SERVICES
Details of amounts paid or payable to the auditor for non-audit services provided during the year by the auditor are
outlined in Note 23 to the financial statements. The Directors are satisfied that the provision of non-audit services is
compatible with the general standard of independence for auditors imposed by the Corporations Act 2001.
The Directors are of the opinion that the services do not compromise the auditor’s independence as all non-audit services
have been reviewed to ensure that they do not impact the impartiality and objectivity of the auditor and none of the
services undermine the general principles relating to auditor independence as set out in Code of Conduct APES 110:
Code of Ethics for Professional Accountants issued by the Accounting Professional & Ethical Standards Board.
AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES
Section 307C of the Corporations Act 2001 requires our auditors, HLB Mann Judd, to provide the Directors of
the Company with Independence Declaration in relation to the audit of the annual report. This Independence
Declaration is set out on page 17 and forms part of this Directors’ report for the year ended 30 June 2024.
Signed in accordance with a resolution of the Directors.
Mark David Miocevich
Managing Director
Perth, 21 August 2024
VEEM LIMITED 19
DIRECTORS’ REPORT
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the consolidated financial report of VEEM Ltd for the year ended 30
June 2024, I declare that to the best of my knowledge and belief, there have been no contraventions
of:
a)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and
b)
any applicable code of professional conduct in relation to the audit.
Perth, Western Australia
21 August 2024
D B Healy
Partner
AUDITOR’S INDEPENDENCE DECLARATION
FINANCIAL STATEMENTS
20 VEEM LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
2024 ($)
2023 ($)
Notes
Continuing operations
Revenue
2
80,554,382
59,579,944
Government subsidies
2
84,110
795,196
Foreign exchange losses (net)
(45,964)
(6,720)
Changes in inventories of finished goods and work in progress
(3,238,876)
5,409,765
Raw materials and consumables purchases
(32,534,080)
(27,348,315)
Employee benefits expense
(23,533,820)
(23,210,799)
Depreciation and amortisation expense
(5,367,190)
(4,082,386)
Repairs and maintenance expenses
(1,692,919)
(1,507,645)
Occupancy expense
(1,336,771)
(1,308,740)
Borrowing costs expense
(1,308,686)
(985,646)
Other expenses
2
(3,479,403)
(2,448,459)
Profit before income tax expense
8,100,783
4,886,195
Income tax expense
3
(1,114,967)
(773,987)
Net profit for the year
6,985,816
4,112,208
Other comprehensive income, net of income tax
Items that may be reclassified subsequently to profit or loss
Cash flow hedges – effective portion of changes in fair value
140,887
(109,796)
Foreign operations – foreign currency translation reserve difference
1,359
1,218
142,246
(108,578)
Items that will not be reclassified to profit or loss
-
-
Other comprehensive income/(loss) for the year, net of tax
142,246
(108,578)
Total comprehensive income for the year
7,128,062
4,003,630
Earnings per share
Basic earnings per share (cents per share)
Diluted earnings per share (cents per share)
5
5
5.15
5.14
3.03
3.03
The above Statement of Profit or Loss and Other Comprehensive invoice should be read in conjunction with the accompanying notes.
VEEM LIMITED 21
FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
AS AT 30 JUNE 2024
2024 ($)
2023 ($)
Notes
ASSETS
Current assets
Cash and cash equivalents
7
170,558
2,421,112
Trade and other receivables
8
13,204,501
10,112,724
Inventories
9
23,433,884
20,937,448
Other assets
10
2,074,588
1,335,003
Current tax assets
3
355,203
205,603
Total current assets
39,238,734
35,011,890
Non-current assets
Property, plant and equipment
11
21,748,900
21,340,215
Deferred tax assets
3
2,850,684
4,268,401
Intangible assets
12
21,902,417
21,021,524
Right-of-use-asset
13
8,225,199
9,861,752
Total non-current assets
54,727,200
56,491,892
Total assets
93,965,934
91,503,782
LIABILITIES
Current liabilities
Trade and other payables
14
8,001,919
6,399,378
Borrowings – current
15
2,785,236
4,632,155
Provisions
17
3,965,135
3,933,864
Derivative liability
20
77,638
169,521
Lease liabilities - current
16
1,731,766
1,650,942
Total current liabilities
16,561,694
16,785,860
Non-current liabilities
Borrowings – non current
15
9,752,908
10,508,404
Deferred tax liabilities
3
7,557,684
7,906,485
Provisions
17
100,929
100,929
Lease liabilities – non current
16
7,709,191
9,380,242
Total non-current liabilities
25,120,712
27,896,060
Total liabilities
41,682,406
44,681,920
Net assets
52,283,528
46,821,862
EQUITY
Issued capital
18
11,541,213
11,509,613
Reserves
19
141,703
(39,756)
Retained earnings
40,600,612
35,352,005
Total equity
52,283,528
46,821,862
The above Statement of Financial Position should be read in conjunction with the accompanying notes.
FINANCIAL STATEMENTS
22 VEEM LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
Note
Issued Capital
$
Reserves
$
Retained earnings
$
Total
$
At 1 July 2022
11,509,613
24,722
32,067,675
43,602,010
Profit for the year
-
-
4,112,208
4,112,208
Other comprehensive loss,
net of income tax
-
(108,578)
-
(108,578)
Total comprehensive income
for the year
-
(108,578)
4,112,208
4,003,630
Shares issued during the year
-
44,100
-
44,100
Dividends paid
6
-
-
(827,878)
(827,878)
Balance at 30 June 2023
11,509,613
(39,756)
35,352,005
46,821,862
Profit for the year
-
-
6,985,816
6,985,816
Other comprehensive income,
net of income tax
-
142,246
-
142,246
Total comprehensive income
for the year
-
142,246
6,985,816
7,128,062
Shares issued during the year
31,600
(31,600)
-
-
Share-based payment
expense recognised
-
70,813
-
70,813
Dividends paid
6
-
-
(1,737,209)
(1,737,209)
Balance at 30 June 2024
11,541,213
141,703
40,600,612
52,283,528
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.
VEEM LIMITED 23
FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
2024 ($)
2023 ($)
Notes
Cash flows from operating activities
Receipts from customers
74,839,656
60,505,046
Payments to suppliers and employees
(65,175,698)
(55,687,579)
Government subsidies received
84,110
795,196
Other receipts
27,149
44,860
Interest paid
(1,308,686)
(985,646)
Interest received
1,541
419
Income tax received / (paid)
(149,033)
(58,942)
Net GST received
41,698
100,795
Net cash flows provided by operating activities
7
8,360,737
4,714,149
Cash flows from investing activities
Payments for property, plant and equipment
(1,294,697)
(1,773,107)
Payments for intangible assets
(1,931,652)
(2,007,963)
Proceeds from sale of property, plant and equipment
-
-
Net cash flows used in investing activities
(3,226,349)
(3,781,070)
Cash flows from financing activities
Dividends paid
6
(1,737,209)
(827,878)
Payments of lease liabilities
7
(1,661,225)
(1,504,517)
Proceeds from borrowings
3,316,671
3,692,141
Repayment of borrowings
(5,441,017)
(1,200,000)
Repayment of hire purchase liabilities
7
(1,861,440)
(1,327,412)
Net cash flows (used in) / provided by financing activities
(7,384,220)
(1,167,666)
Net (decrease) / increase in cash and cash equivalents
(2,249,832)
(234,587)
Cash and cash equivalents at the beginning of the year
2,421,112
2,632,302
Effect of exchange rate fluctuations on cash held
(722)
23,397
Cash and cash equivalents at the end of the year
7
170,558
2,421,112
The above Statement of Cash Flows should be read in conjunction with the accompanying notes.
NOTES TO FINANCIAL STATEMENTS
24 VEEM LIMITED
NOTE 1: STATEMENT OF MATERIAL ACCOUNTING POLICIES
(a) BASIS OF PREPARATION
These financial statements are consolidated general purpose
financial statements of VEEM Ltd (“the Company”) and its
controlled entities (“the Group”), which have been prepared
in accordance with the requirements of the Corporations
Act 2001, Accounting Standards and Interpretations
and comply with other requirements of the law.
The accounting policies detailed below have been
consistently applied to all of the years presented unless
otherwise stated. For the purpose of preparing the
financial statements, the Group is a for-profit entity.
The financial statements have been prepared on a historical
cost basis except for where applicable derivative financial
instruments. Historical cost is based on the fair values of the
consideration given in exchange for goods and services.
The Company is a listed public Company, incorporated
in Australia and operating in Australia selling into
domestic and global markets. The Group’s principal
activities are described in the Directors’ Report.
Where necessary comparatives have been amended
to be consistent with current year treatment.
Going concern
This report has been prepared on the going concern
basis, which contemplates continuity of normal business
activities and the realisation of assets and settlements
of liabilities in the ordinary course of business.
(b) ADOPTION OF THE REVISED STANDARDS
Standards and Interpretations applicable to 30 June 2024
In the year ended 30 June 2024, the Directors have reviewed
all of the new and revised Standards and Interpretations issued
by the AASB that are relevant to the Group and effective for the
reporting period beginning on or after 1 July 2023. As a result of
this review, the Directors have determined that there is no material
impact of the Standard and Interpretations issued on the Group
and, therefore, no change is necessary to its accounting policies.
New Standards and Interpretations in issue not yet adopted
The Directors have also reviewed all of the new and revised
Standards and Interpretations in issue not yet adopted for the
year ended 30 June 2024. As a result of this review, the Directors
have determined that there is no material impact of the Standard
and Interpretations in issue not yet adopted on the Group and,
therefore, no change is necessary to its accounting policies.
No other new standards, amendments to standards or interpretations
are expected to affect the Group’s financial statements.
(c) STATEMENT OF COMPLIANCE
The financial report was authorised for issue by
the Board of VEEM Ltd on 21 August 2024.
The financial report complies with Australian Accounting
Standards, which include Australian equivalents to International
Financial Reporting Standards (AIFRS). Compliance with
AIFRS ensures that the financial report, comprising the
financial statements and notes thereto, complies with
International Financial Reporting Standards (IFRS).
(d) SIGNIFICANT ACCOUNTING
JUDGMENTS AND KEY ESTIMATES
The preparation of the financial report requires management
to make judgments, estimates and assumptions that affect
the application of accounting policies and the reported
amounts of assets, liabilities, income and expense.
Actual results may differ from these estimates.
Leases
The Group has leases for the main warehouse and related
facilities, an office and production building. The lease liabilities
are secured by the related underlying assets. In applying
AASB16 the Group used the following practical expedients:
•
The use of a single discount rate to a portfolio
of leases with similar characteristics.
•
The exclusion of initial direct costs for the measurement
of the right-of-use-asset at the date of initial application.
•
The use of hindsight in determining the lease term where
the contract contains options to extend or terminate.
Amortisation of product development
Product development is amortised based on units of production
as the Board has determined that this appropriately apportions
the costs of development across the units produced to meet
customer orders and building of inventory to meet future
orders. Product development costs continue to be monitored
for any indicators that these costs may be impaired or
whether the amortisation rate needs to be accelerated.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary
differences as management considers that it is probable
that sufficient future tax profits will be available to utilise
those temporary differences. Significant management
judgement is required to determine the amount of deferred
tax assets that can be recognised, based upon the
likely timing and the level of future taxable profits.
Inventories
Management estimates the net realisable values of inventories,
taking into account the most reliable evidence available at
each reporting date. The future realisation of these inventories
may be affected by future technology or other market-
driven changes that may reduce future selling prices.
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
VEEM LIMITED 25
NOTES TO FINANCIAL STATEMENTS
Capitalisation of internally developed products
Distinguishing the research and development phases of new
products and determining whether the recognition requirements
for the capitalisation of development costs are met requires
judgement. After capitalisation, management monitors whether
the recognition requirements continue to be met and whether
there are any indicators that capitalised costs may be impaired.
The Group assesses at each balance date whether there
is an indication that an asset may be impaired. If any such
indication exists, the Group makes an estimate of the asset’s
recoverable amount, being the higher of its fair value less
costs to sell and its value in use. The value in use requires
an estimation of the recoverable amount of the cash
generating units to the assets are allocated. There were
no indicators of impairment during the financial year.
(e) SEGMENT REPORTING
Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker. The chief operating decision maker, who
is responsible for allocating resources and assessing
performance of the operating segments, has been
identified as the Board of Directors of VEEM Ltd.
The Board has determined the operating segments based on
the reports reviewed by the Board of directors that are used
to make strategic decisions. The entity does not have any
operational segments with discrete financial information.
The Board of Directors review internal management reports
on a monthly basis that are consistent with the information
provided in the statement of profit or loss and other
comprehensive income, statement of financial position
and statement of cash flows. As a result, no reconciliation
is required because the information as presented is what
is used by the Board to make strategic decisions.
(f) FOREIGN CURRENCY TRANSLATION
Both the functional and presentation currency
of VEEM Ltd is Australian dollars. The functional
currency of VEEM Marine (Europe) B.V is Euro.
Transactions in foreign currencies are initially recorded in
the functional currency by applying the exchange rates
ruling at the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies are retranslated
at the rate of exchange ruling at the balance date.
All exchange differences in the financial report are taken to
profit or loss. Non-monetary items that are measured in terms
of historical cost in a foreign currency are translated using
the exchange rate as at the date of the initial transaction.
Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the
date when the fair value was determined. Translation
differences on assets and liabilities carried at fair value
are reported as part of the fair value gain or loss.
As at the balance date the assets and liabilities of the subsidiaries
are translated into the presentation currency of VEEM Ltd
at the rate of exchange ruling at the balance date and its
statement of profit or loss and other comprehensive income
is translated at the average exchange rate for the year.
The exchange differences arising on the translation are taken
directly to the foreign currency translation reserve in equity.
On disposal of a foreign entity, the deferred cumulative
amount recognised in equity relating to that particular
foreign operation is recognised in profit or loss.
(g) REVENUE RECOGNITION
Revenue from contracts with customers is measured at fair
value of the consideration received or receivable. Amounts
disclosed as revenue are net of returns, trade allowances,
rebates and amounts collected on behalf of third parties. Contract
liabilities are recognised where applicable in relation to sales.
Point in time recognition - sale of goods
– propulsion & stabilisation
Revenue is recognised when the goods are
delivered and titles have passed, at which time
all the following conditions are satisfied:
•
the Group has transferred to the buyer the significant
risks and rewards of ownership of the goods;
•
the Group retains neither continuing managerial
involvement to the degree usually associated with
ownership nor effective control over the goods sold;
•
the amount of revenue can be measured reliably;
•
it is probable that the economic benefits associated
with the transaction will flow to the Group; and
•
the costs incurred or to be incurred in respect of
the transaction can be measured reliably.
Over time recognition - Sale of goods and rendering
of services - mining & industrial engineering,
propulsion & stabilisation and defence
In determining whether performance obligations are
satisfied over time the Group considers the following:
•
Legal control is often retained by the customer;
•
VEEM products and services are highly specialised
and often do not have an alternate use; and
•
Contracts are established with customers so that VEEM
has an enforceable right to payment for performance
completed to date, including profit margin.
Revenue is recognised by reference to the stage of completion
of the performance obligation. The stage of completion of
the performance obligation is determined as follows:
•
Contract income is recognised by reference to the total
actual costs incurred at the end of the reporting period
relative to the proportion of the total costs expected to
be incurred over the life of the performance obligation;
•
Servicing fees are recognised by reference
to the proportion of the total cost of providing
the service for the product sold; and
•
Revenue from time and material contracts are
recognised at the contractual rates as labour hours
are delivered and direct expenses are incurred.
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
NOTES TO FINANCIAL STATEMENTS
26 VEEM LIMITED
(h) LEASES
Where the Group is a lessee, the Group recognises a right-of-use
asset and a corresponding liability at the date which the lease
asset is available for use by the Group (i.e., commencement
date). Each lease payment is allocated between the liability and
the finance cost. The finance cost is charged to profit or loss over
the lease period so as to produce a consistent period rate of
interest on the remaining balance of the liability for each period.
The lease liability is initially measured at the present value
of the lease payments that are not paid at commencement
date, discounted using the rate implied in the lease. If
this rate is not readily determinable, the Group uses its
incremental borrowing rate. Lease payments included in
the initial measurement of the lease liability consist of:
Fixed lease payments less any lease incentives receivable;
•
Variable lease payments that depend on an
index or rate, initially measured using the
index or rate at commencement date;
•
Any amounts expected to be payable by the
Group under residual value guarantees;
•
The exercise price of purchase options, if the Group
is reasonably certain to exercise the options; and
•
Termination penalties of the lease term reflects the
exercise of an option to terminate the lease.
Extension options are included in a number of property leases
across the Group. In determining the lease term, management
considers all facts and circumstances that create an economic
incentive to exercise an extension option. Extension options
are only included in the lease term if, at commencement date,
it is reasonably certain that the options will be exercised.
Subsequent to initial recognition, the lease liability is measured
by increasing the carrying amount to reflect interest on the lease
liability (using the effective interest method) and by reducing the
carrying amount to reflect the lease payments made. The lease
liability is remeasured (with a corresponding adjustment to the
right-of-use asset) whenever there is a change in the lease term
(including assessments relating to extension and termination
options), lease payments due to changes in an index or rate,
or expected payments under guaranteed residual values.
Right-of-use assets comprise the initial measurement
of the corresponding lease liability, lease payments
made at or before commencement date, less any lease
incentives received and any initial direct costs. These right-
of-use assets are subsequently measured at cost less
accumulated depreciation and impairment losses.
Where the terms of a lease require the Group to restore
the underlying asset, or the Group has an obligation
to dismantle and remove a leased asset, a provision is
recognised and measured in accordance with AASB 137.
To the extent that the costs relate to a right-of-use asset,
the costs are included in the related right-of-use asset.
Right-of-use assets are depreciated on a straight-line basis over
the term of the lease (or the useful life of the leased asset if this is
shorter). Depreciation starts on commencement date of the lease.
Where leases have a term of less than 12 months or relate to low
value assets, the Group has applied the optional exemptions
to not capitalise these leases and instead account for the
lease expense on a straight-line basis over the lease term.
(i) INCOME TAX
The income tax expense or benefit for the period is
the tax payable on the current period’s taxable income
based on the applicable income tax rate adjusted by
changes in deferred tax assets and liabilities attributable
to temporary difference and to unused tax losses.
The current income tax charge is calculated on the basis
of the tax laws enacted or substantively enacted at the end
of the reporting period. Management periodically evaluates
positions taken in tax returns with respect to situations in
which applicable tax regulation is subject to interpretation.
It establishes provisions where appropriate on the basis
of amounts expected to be paid to the tax authorities.
Current tax assets and liabilities for the current and prior
periods are measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax rates and
tax laws used to compute the amount are those that are
enacted or substantively enacted by the balance date.
Deferred income tax is provided on all temporary differences at
the balance date between the tax bases of assets and liabilities
and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for
all taxable temporary differences except:
•
when the deferred income tax liability arises from
the initial recognition of an asset or liability in a
transaction that is not a business combination and
that, at the time of the transaction, affects neither
the accounting profit nor taxable profit or loss; or
•
when the taxable temporary difference is associated
with investments in subsidiaries, associates or
interests in joint ventures, and the timing of the
reversal of the temporary difference can be controlled
and it is probable that the temporary difference
will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible
temporary differences, carry-forward of unused tax assets
and unused tax losses, to the extent that it is probable that
taxable profit will be available against which the deductible
temporary differences and the carry-forward of unused tax
credits and unused tax losses can be utilised, except:
•
when the deferred income tax asset relating to
the deductible temporary difference arises from
the initial recognition of an asset or liability in a
transaction that is not a business combination
and, at the time of the transaction, affects neither
the accounting profit nor taxable profit or loss.
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
VEEM LIMITED 27
NOTES TO FINANCIAL STATEMENTS
The carrying amount of deferred income tax assets is reviewed
at each balance date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to
allow all or part of the deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed
at each balance date and are recognised to the extent
that it has become probable that future taxable profit
will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured
at the tax rates that are expected to apply to the year
when the asset is realised or the liability is settled, based
on tax rates (and tax laws) that have been enacted
or substantively enacted at the balance date.
Income taxes relating to items recognised directly in equity
are recognised in equity and not in profit or loss.
Deferred tax assets and deferred tax liabilities are offset only if a
legally enforceable right exists to set off current tax assets against
current tax liabilities and the deferred tax assets and liabilities
relate to the same taxable entity and the same taxation authority.
(j) IMPAIRMENT OF TANGIBLE AND INTANGIBLE ASSETS
The Group assesses at each balance date whether there
is an indication that an asset may be impaired. If any such
indication exists, or when annual impairment testing for an
asset is required, the Group makes an estimate of the asset’s
recoverable amount. An asset’s recoverable amount is the
higher of its fair value less costs to sell and its value in use and
is determined for an individual asset, unless the asset does not
generate cash inflows that are largely independent of those
from other assets or group of assets and the asset’s value in
use cannot be estimated to be close to its fair value. In such
cases the asset is tested for impairment as part of the cash-
generating unit to which it belongs. When the carrying amount
of an asset or cash-generating unit exceeds its recoverable
amount, the asset or cash-generating unit is considered
impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of
money and the risks specific to the asset. Impairment losses
relating to continuing operations are recognised in those expense
categories consistent with the function of the impaired asset
unless the asset is carried at revalued amount (in which case
the impairment loss is treated as a revaluation decrease).
An assessment is also made at each balance date as to
whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased.
If such indication exists, the recoverable amount is estimated.
A previously recognised impairment loss is reversed only if
there has been a change in the estimates used to determine
the asset’s recoverable amount since the last impairment
loss was recognised. If that is the case the carrying amount
of the asset is increased to its recoverable amount. That
increased amount cannot exceed the carrying amount that
would have been determined, net of depreciation, had no
impairment loss been recognised for the asset in prior years.
Such reversal is recognised in profit or loss unless the asset
is carried at revalued amount, in which case the reversal is
treated as a revaluation increase. After such a reversal the
depreciation charge is adjusted in future periods to allocate
the asset’s revised carrying amount, less any residual value,
on a systematic basis over its remaining useful life.
(k) TRADE AND OTHER RECEIVABLES
Trade receivables are measured on initial recognition at
fair value and are subsequently measured at amortised
cost using the effective interest rate method, less any
allowance for impairment. Trade receivables are generally
due for settlement within periods ranging from 15 days
to 90 days after the month in which they are arise.
Impairment of trade receivables is continually reviewed and those
that are considered to be uncollectible are written off by reducing
the carrying amount directly. An allowance account is used when
there is objective evidence that the Group will not be able to
collect all amounts due according to the original contractual terms.
Factors considered by the Group in making this determination
include known significant financial difficulties of the debtor,
review of financial information and significant delinquency in
making contractual payments to the Group. The impairment
allowance is set equal to the difference between the
carrying amount of the receivable and the present value
of estimated future cash flows, discounted at the original
effective interest rate. Where receivables are short-term
discounting is not applied in determining the allowance.
The amount of the impairment loss is recognised in the statement
of profit or loss and other comprehensive income within other
expenses. When a trade receivable for which an impairment
allowance had been recognised becomes uncollectible in a
subsequent period, it is written off against the allowance account.
Subsequent recoveries of amounts previously written off are
credited against other expenses in the statement of profit or loss
and other comprehensive income.
(l) INVENTORIES
Raw material, stores and work in progress
Raw materials, stores and work in progress are stated at the
lower of cost and net realisable value. Cost comprises direct
materials, direct labour and an appropriate proportion of variable
and fixed overhead expenditure, the latter being allocated on
the basis of normal operating capacity. Costs are assigned to
individual items of stock mainly on the basis of average cost.
Contract work in progress
Contract work in progress is stated at cost plus attributable
profit to date (based on percentage of completion of each
contract) less progress billings. Cost includes all costs
directly related to specific contracts and an allocation of
overhead expenses incurred in connection with the Group’s
contract operations. Where a loss on completion is indicated
that loss is brought to account in the current year.
Net realisable value is the estimated selling price in the
ordinary course of business, less estimated costs of completion
and the estimated costs necessary to make the sale.
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
NOTES TO FINANCIAL STATEMENTS
28 VEEM LIMITED
(m) DERECOGNITION OF FINANCIAL
ASSETS AND FINANCIAL LIABILITIES
Financial assets
•
A financial asset (or, where applicable, a part
of a financial asset or part of a Group of similar
financial assets) is de-recognised when:
•
the rights to receive cash flows from
the asset have expired;
•
the Group retains the right to receive cash flows
from the asset, but has assumed an obligation to
pay them in full without material delay to a third
party under a ‘pass-through’ arrangement; or
•
the Group has transferred its rights to receive
cash flows from the asset and either:
-
has transferred substantially all the
risks and rewards of the asset; or
-
has neither transferred nor retained substantially
all the risks and rewards of the asset, but
has transferred control of the asset.
When the Group has transferred its rights to receive cash
flows from an asset and has neither transferred nor retained
substantially all the risks and rewards of the asset nor transferred
control of the asset, the asset is recognised to the extent of
the Group’s continuing involvement in the asset. Continuing
involvement that takes the form of a guarantee over the
transferred asset is measured at the lower of the original carrying
amount of the asset and the maximum amount of consideration
received that the Group could be required to repay.
When continuing involvement takes the form of a written and/
or purchased option (including a cash-settled option or similar
provision) on the transferred asset, the extent of the Group’s
continuing involvement is the amount of the transferred asset
that the Group may repurchase, except that in the case of a
written put option (including a cash-settled option or similar
provision) on an asset measured at fair value, the extent of the
Group’s continuing involvement is limited to the lower of the fair
value of the transferred asset and the option exercise price.
Financial liabilities
A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the
same lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or
modification is treated as a derecognition of the original liability
and the recognition of a new liability, and the difference in the
respective carrying amounts is recognised in profit or loss.
(n) PROPERTY, PLANT AND EQUIPMENT
Plant and equipment are stated at cost less accumulated
depreciation and any accumulated impairment losses. Such
cost includes the cost of replacing parts that are eligible for
capitalisation when the cost of replacing the parts is incurred.
Similarly, when each major inspection is performed, its cost is
recognised in the carrying amount of the plant and equipment
as a replacement only if it is eligible for capitalisation.
Depreciation is calculated on a straight-line basis over
the estimated useful life of the assets as follows:
Motor vehicles
3-10 years
Plant and equipment
5-30 years
Computer equipment
3-5 years
The assets’ residual values, useful lives and
amortisation methods are reviewed, and adjusted
if appropriate, at each financial year end.
Impairment
The carrying values of plant and equipment are reviewed for
impairment at each balance date, with recoverable amount
being estimated when events or changes in circumstances
indicate that the carrying value may be impaired.
The recoverable amount of plant and equipment is the
higher of fair value less costs to sell and value in use. In
assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time
value of money and the risks specific to the asset.
For an asset that does not generate largely independent cash
inflows, recoverable amount is determined for the cash-generating
unit to which the asset belongs, unless the asset’s value in use
can be estimated to approximate fair value. An impairment exists
when the carrying value of an asset or cash-generating unit
exceeds its estimated recoverable amount. The asset or cash-
generating unit is then written down to its recoverable amount.
For plant and equipment, impairment losses are recognised in
the statement of profit or loss and other comprehensive income.
De-recognition and disposal
An item of property, plant and equipment is derecognised
upon disposal or when no further future economic
benefits are expected from its use or disposal.
Any gain or loss arising on de-recognition of the asset
(calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included
in profit or loss in the year the asset is derecognised.
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
VEEM LIMITED 29
NOTES TO FINANCIAL STATEMENTS
(o) INTANGIBLE ASSETS
Intangible assets acquired separately
Intangible assets acquired separately are recorded at cost
less accumulated amortisation and impairment. Amortisation is
charged on a straight-line basis over their estimated useful lives.
The estimated useful life and amortisation method is reviewed at
the end of each annual reporting period, with any changes in these
accounting estimates being accounted for on a prospective basis.
Internally generated intangible assets
Expenditure on research activities is recognised as an expense
in the period in which it is incurred. Where no internally generated
intangible asset can be recognised, development expenditure
is recognised as an expense in the period as incurred.
An intangible asset arising from development (or from the
development phase of an internal project) is recognised if,
and only if, all of the following have been demonstrated:
•
The technical feasibility of completing the intangible
asset so that it will be available for use or sale;
•
The intention to complete the intangible
asset and use or sell it;
•
The ability to use or sell the intangible asset;
•
How the intangible asset will generate
probable future economic benefits;
•
The availability of adequate technical, financial
and other resources to complete development
and to use or sell the intangible asset; and
•
The ability to measure reliably the expenditure attributable
to the intangible asset during its development.
The amount initially recognised for internally-generated intangible
assets is the sum of the expenditure incurred from the date when
the intangible asset first meets the recognition criteria listed above.
Subsequent to initial recognition, internally-generated
intangible assets are reported at cost less accumulated
amortisation and accumulated impairment losses, on the
same basis as intangible assets acquired separately.
The following useful lives are used in the
calculation of amortisation:
Patents
10 – 20 years
Product Development Expenditure
Units of production
Software
10 years
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a
lease. The right-of-use asset is measured at cost, which comprises
the initial amount of the lease liability, adjusted for, as applicable,
any lease payments made at or before the commencement
date net of any lease incentives received, any initial direct costs
incurred, and, except where included in the cost of inventories,
an estimate of costs expected to be incurred for dismantling and
removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis
over the unexpired period of the lease or the estimated
useful life of the asset, whichever is the shorter. Where the
Group expects to obtain ownership of the leased asset at the
end of the lease term, the depreciation is over its estimated
useful life. Right-of-use assets are subject to impairment
or adjusted for any remeasurement of lease liabilities.
The Group has elected not to recognise a right-of-use asset and
corresponding lease liability for short-term leases with terms of 12
months or less and leases of low-value assets. Lease payments
on these assets are expensed to profit or loss as incurred.
(p) TRADE AND OTHER PAYABLES
Trade payables and other payables are carried at amortised
cost and represent liabilities for goods and services provided
to the Group prior to the end of the financial year that are
unpaid and arise when the Group becomes obliged to make
future payments in respect of the purchase of these goods
and services. Trade and other payables are presented as
current liabilities unless payment is not due within 12 months.
(q) BORROWINGS
Borrowings are initially recognised at fair value, net of transaction
costs incurred. Borrowings are subsequently measured at
amortised cost. Any difference between the proceeds (net of
transaction costs) and the redemption amount is recognised
in profit or loss over the period of the borrowings using the
effective interest method. Fees paid on the establishment of
loan facilities are recognised as transaction costs of the loan
to the extent that it is probable that some or all of the facility
will be drawn down. In this case, the fee is deferred until the
draw down occurs. To the extent there is no evidence that it is
probable that some or all of the facility will be drawn down, the
fee is capitalised as a prepayment for liquidity services and
amortised over the period of the facility to which it relates.
Borrowings are removed from the statement of financial position
when the obligation specified in the contract is discharged,
cancelled or expired. The difference between the carrying
amount of a financial liability that has been extinguished or
transferred to another party and the consideration paid, including
any non-cash assets transferred or liabilities assumed, is
recognised in profit or loss as other income or finance costs.
Borrowings are classified as current liabilities unless the
Group has an unconditional right to defer settlement of the
liability for at least 12 months after the reporting period.
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
NOTES TO FINANCIAL STATEMENTS
30 VEEM LIMITED
(r) PROVISIONS
Provisions are recognised when the Group has a present
obligation (legal or constructive) as a result of a past event,
it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. Provisions
are not recognised for future operating losses.
When the Group expects some or all of a provision to be
reimbursed, for example under an insurance contract, the
reimbursement is recognised as a separate asset but only when
the reimbursement is virtually certain. The expense relating
to any provision is presented in the statement of profit or loss
and other comprehensive income net of any reimbursement.
Provisions are measured at the present value or management’s
best estimate of the expenditure required to settle the
present obligation at the end of the reporting period.
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects the risks specific to the liability.
When discounting is used, the increase in the provision due to
the passage of time is recognised as an interest expense.
Onerous contracts
Presen obligations arising under onerous contracts are recognised
and measured as provisions. An onerous contract is considered to
exist where the Group has a contract under which the unavoidable
costs of meeting the obligations under the contract exceed the
economic benefits expected to be received from the contract.
Warranties
Provisions for the expected cost of warranty obligations under
local sale of goods legislation are recognised at the date of
sale of the relevant products, at the Directors’ best estimate
of the expenditure required to settle the Group’s obligation.
Commissioning Costs
Provisions for the expected cost of commissioning gyrostabilisers
are recognised where the sale is inclusive of commissioning.
Lease restoration provision
A provision has been made for the present value of anticipated
costs for future restoration of leased premises. The provision
includes future cost estimates associated with the end of the lease
term. The calculation of this provision requires assumptions such
as application of end dates and cost estimates. The provision
recognised for each site is periodically reviewed and updated
based on the facts and circumstances available at the time.
Changes to the estimated future costs for sites are recognised
in the statement of financial position by adjusting the asset
and the provision. Reductions in the provision that exceed the
carrying amount of the asset will be recognised in profit or loss.
Annual leave
The liability for annual leave is measured as the value of
the expected future payments to be made in respect of
services provided by employees up to the balance date.
Long service leave
The liability for long service leave is measured as the present
value of expected future payments to be made in respect
of services provided by employees up to the balance date.
Consideration is given to expected future wage and salary
levels, experience of employee departures and period of service.
Expected future payments are discounted using market yields
at the balance date on national government bonds with terms to
maturity and currencies that match, as closely as possible, the
estimated future cash outflows.
(s) DIVIDENDS
Provision is made for the amount of any dividend declared,
being appropriately authorised and no longer at the discretion
of the entity, on or before the end of the reporting period
but not distributed at the end of the reporting period.
(t) EARNINGS PER SHARE
Basic earnings per share is calculated as net profit attributable to
members of the parent, adjusted to exclude any costs of servicing
equity (other than dividends), divided by the weighted average
number of ordinary shares, adjusted for any bonus element.
Diluted earnings per share are calculated, where applicable,
as net profit attributable to members of the parent, adjusted for:
•
costs of servicing equity (other than dividends);
•
the after-tax effect of dividends and interest
associated with dilutive potential ordinary shares
that have been recognised as expenses; and
•
other non-discretionary changes in revenues or expenses
during the period that would result from the dilution
of potential ordinary shares; divided by the weighted
average number of ordinary shares and dilutive potential
ordinary shares, adjusted for any bonus element.
(u) DERIVATIVE FINANCIAL INSTRUMENTS
Derivatives are initially recognised at fair value on the date
a derivative contract is entered into and are subsequently
remeasured to their fair value at each reporting date. The
accounting for subsequent changes in fair value depends
on whether the derivative is designated as a hedging
instrument, and if so, the nature of the item being hedged.
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
VEEM LIMITED 31
NOTES TO FINANCIAL STATEMENTS
Cash flow hedges:
Cash flow hedges are used to cover the Group’s exposure
to variability in cash flows that is attributable to particular
risks associated with a recognised asset or liability or a firm
commitment which could affect profit or loss. The effective
portion of the gain or loss on the hedging instrument is
recognised in other comprehensive income through the cash
flow hedges reserve in equity, whilst the ineffective portion
is recognised in profit or loss. Amounts taken to equity are
transferred out of equity and included in the measurement of
the hedged transaction when the forecast transaction occurs.
Cash flow hedges are tested for effectiveness on a regular basis
both retrospectively and prospectively to ensure that each hedge
is highly effective and continues to be designated as a cash flow
hedge. If the forecast transaction is no longer expected to occur,
the amounts recognised in equity are transferred to profit or loss.
If the hedging instrument is sold, terminated, expires,
exercised without replacement or rollover, or if the hedge
becomes ineffective and is no longer a designated
hedge, the amounts previously recognised in equity
remain in equity until the forecast transaction occurs.
The Group subsequently measures derivative financial
instruments at fair value. Gains and losses on derivative
financial instruments that do not qualify for hedge accounting
are recognised in the Profit and Loss for the period.
Amounts recognised in equity are reclassified from reserves
into the cost of the underlying transaction and recognised in
the Profit and Loss when the underlying transactions affects
the Profit and Loss. The ineffective portion of any change in
the fair value of the instrument is recognised in the Profit and
Loss immediately. Where a derivative financial instrument is
designated as a fair value hedge changes in the fair value of
the underlying asset or liability attributable to the hedge risk,
and gains and losses on the derivative financial instrument
are recognised in the Profit and Loss for the period.
(v) BASIS OF CONSOLIDATION
Subsidiaries are all entities (including structured entities)
over which the Group has control. The Group controls an
entity when the Group is exposed to, or has rights to, variable
returns from its involvement with the entity and has the
ability to affect those returns through its power to direct the
activities of the entity. Subsidiaries are fully consolidated from
the date on which control is transferred to the Group. They
are deconsolidated from the date that control ceases.
A list of controlled entities is contained in
Note 22 to the financial statements.
As at reporting date, the assets and liabilities of all controlled
entities have been incorporated into the consolidated financial
statements as well as their results for the year then ended.
The results of subsidiaries acquired or disposed of during
the year are included in the consolidated statement of profit
or loss and other comprehensive income from the effective
date of acquisition and up to the effective date of disposal,
as appropriate. The acquisition method of accounting is
used to account for business combinations by the Group.
Intercompany transactions, balances and unrealised gains on
transactions between Group companies are eliminated. Unrealised
losses are also eliminated unless the transaction provides
evidence of an impairment of the transferred asset. Accounting
policies of subsidiaries have been changed where necessary
to ensure consistency with the policies adopted by the Group.
Non-controlling interests in the results and equity of subsidiaries
are shown separately in the consolidated statement of profit or
loss and other comprehensive income, statement of changes
in equity and statement of financial position respectively.
Changes in the Group’s interests in subsidiaries that do not result
in a loss of control are accounted for as equity transactions.
The carrying amounts of the Group’s interests and the non-
controlling interests are adjusted to reflect the changes in their
relative interests in the subsidiaries. Any difference between the
amount by which the non-controlling interests are adjusted and
the fair value of the consideration paid or received is recognised
directly in equity and attributed to owners of the Company.
When the Group loses control of a subsidiary, the profit or loss on
disposal is calculated as the difference between (i) the aggregate
of the fair value of the consideration received and the fair value
of any retained interest and (ii) the previous carrying amount of
the assets (including goodwill), and liabilities of the subsidiary
and any non-controlling interests. Amounts previously recognised
in other comprehensive income in relation to the subsidiary are
accounted for (i.e. reclassified to profit or loss or transferred
directly to retained earnings) in the same manner as would be
required if the relevant assets or liabilities were disposed of.
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
NOTES TO FINANCIAL STATEMENTS
32 VEEM LIMITED
NOTE 2: REVENUE AND EXPENSES
Revenue from contracts with customers
2024 ($)
2023 ($)
Sales revenue
Revenue – point in time
12,876,058
5,922,960
Revenue – over time
67,651,175
53,612,125
80,527,233
59,535,085
Other revenue
27,149
44,859
80,554,382
59,579,944
Government Subsidies
Apprentice subsidies
53,519
261,442
Government subsidies – Manufacturing Modernisation Fund
30,591
533,754
84,110
795,196
During the year, the Group recognised revenue of $10,314,808 (2023: $7,808,886) in relation to the prior years’ work in
progress. The Group has progress billings at 30 June 2024 of $5,110,480 (2023: $7,704,738), refer to Note 9.
The Group has contract assets, being work in progress (recognised over time) at 30 June 2024 of $8,766,220 (2023: $7,774,193).
The Group recognises revenue from contracts with customers based on the following performance:
•
the completion of the contracted work-scope following factory acceptance testing
in accordance with contract terms and conditions; and
•
when applicable, completion of contracted milestones and transfer of title generally based on:
-
milestone 1 - material acquisition, and/or
-
milestone 2 - completion of casting metal pour, and/or
-
milestone 3 - factory acceptance testing (FAT)
The majority of customer contracts are from the private sector and this accounted for approximately 80% (2023:
79%) of the revenue during FY2024. Sales to government instrumentalities accounted for 20% (2023: 21%).
The geographic distribution of sales for FY2024 was approximately 53% (2023: 61%) derived from customers within Australia and the
remaining 47% (2021: 39%) were derived predominantly from customers in the USA, Sweden, UK, Italy, Turkey, Netherlands and Singapore.
Contracts are received and executed generally within 12 months and hence are considered short term contracts.
Period contracts (those that extend greater than 1 year) with customers are executed by discrete purchase
orders for required shipments and hence still fall within the definition for short term contracts.
The majority of sales are generated by direct contracts with customers. During the year sales agents were utilised in
Europe, MENA, Hong Kong, Turkey and South America (gyrostabilisers only) to introduce enquiries and leads. Contracts
are then established directly between VEEM Ltd and the customer. Distributors are utilised for propeller sales in the USA,
France, Costa Rica and Australia, where the distributors purchase from and contract directly with VEEM Ltd.
VEEM LIMITED 33
NOTES TO FINANCIAL STATEMENTS
Other expenses
2024 ($)
2023 ($)
Insurance
541,188
527,981
Advertising and marketing
720,700
564,182
Bank Charges
92,441
68,163
Accounting and secretarial
369,856
280,920
Non-executive director fees
672,941
341,999
Share based payments
70,813
44,100
Other general expenses
1,011,464
621,114
3,479,403
2,448,459
NOTE 3: INCOME TAX
Income tax recognised in profit or loss
The major components of tax expense are:
2024 ($)
2023 ($)
Current tax expense
3,051,742
(419,051)
Deferred tax expense relating to the origination and reversal of temporary differences
(1,936,775)
1,193,038
Total tax expense
1,114,967
773,987
The prima facie income tax expense on pre-tax accounting profit from operations reconciles
to the income tax expense in the financial statements as follows:
Accounting profit before income tax
8,100,783
4,886,195
Income tax expense calculated at FY2023: 30% (FY2022: 30%)
2,430,235
1,465,859
Tax effect of amounts which are not deductible/(taxable) in calculating taxable income:
Prior year (over)/under provision of income tax
3
(5,969)
Effect of expenses that are not deductible in determining taxable profit
638,477
396,848
Effect of concessions – research and development
(1,953,748)
(1,082,751)
Income tax (benefit)/expense reported in the statement of profit or loss and other
comprehensive income
1,114,967
773,987
The tax rate used in the above reconciliation is the corporate tax rate of 30% payable by Australian corporate
entities with turnover greater than $50 million on taxable profits under Australian tax law.
Current tax receivables comprise:
2024 ($)
2023 ($)
Income tax receivable/(payable)
355,203
205,603
NOTE 2: REVENUE AND EXPENSES (CONTINUED)
NOTES TO FINANCIAL STATEMENTS
34 VEEM LIMITED
NOTE 3: INCOME TAX (CONTINUED)
Deferred tax assets comprise:
2024 ($)
2023 ($)
Annual leave payable
655,288
636,900
Provisions
534,253
545,509
Accrued expenses
140,022
125,185
Unrealised foreign exchange loss
-
24,287
Black hole expenditure and borrowing costs
43
42
Timing difference between Right of Use assets and Lease liabilities
395,006
381,108
Loss carried forward
-
419,051
Unclaimed research and development concessions
1,086,537
2,136,319
Patents
39,535
-
2,850,684
4,268,401
Deferred tax liabilities comprise:
Depreciable property, plant and equipment
7,549,119
7,880,387
Patents
-
26,098
Unrealised foreign exchange loss
8,565
-
7,557,684
7,906,485
Reconciliation of deferred tax assets/ (liabilities):
Opening balance
Charged to income
Closing balance
30 June 2024
($)
($)
($)
Accrued expenses
125,185
14,837
140,022
Annual leave payable
636,900
18,388
655,288
Provisions
545,509
(11,256)
534,253
Property, plant and equipment
(7,880,387)
331,268
(7,549,119)
Unrealised foreign exchange (gain) / loss
24,287
(32,852)
(8,565)
Black hole expenditure and borrowing costs
42
1
43
Patents
(26,098)
65,633
39,535
Losses carried forward
419,051
(419,051)
-
Unclaimed research and development concessions
2,136,319
(1,049,782)
1,086,537
Timing difference between Right of Use assets and Lease liabilities
381,108
13,898
395,006
(3,638,084)
(1,068,916)
(4,707,000)
Opening balance
Charged to income
Closing balance
30 June 2023
($)
($)
($)
Accrued expenses
284,007
(158,822)
125,185
Annual leave payable
589,496
47,404
636,900
Provisions
372,455
173,054
545,509
Property, plant and equipment
(5,721,283)
(2,159,104)
(7,880,387)
Unrealised foreign exchange (gain) / loss
48,924
(24,637)
24,287
Black hole expenditure and borrowing costs
187
(145)
42
Patents
361
(26,459)
(26,098)
Losses carried forward
170,276
248,775
419,051
Unclaimed research and development concessions
1,053,568
1,082,751
2,136,319
Timing difference between Right of Use assets and Lease liabilities
337,916
43,192
381,108
(2,864,093)
(773,991)
(3,638,084)
VEEM LIMITED 35
NOTES TO FINANCIAL STATEMENTS
NOTE 4: SEGMENT REPORTING
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.
The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments,
has been identified as the Board of Directors of VEEM Ltd.
The Board has determined the operating segments based on the reports reviewed by the Board of Directors that are used to make
strategic decisions. The entity does not have any operational segments with discrete financial information.
The Board of Directors review internal management reports on a monthly basis that are consistent with the information provided in
the statement of profit or loss and other comprehensive income, statement of financial position and statement of cash flows. As a
result, no reconciliation is required because the information as presented is what is used by the Board to make strategic decisions.
The Group has two customers (2023: two) where the revenue from those customers was in excess of 10% of the Group’s revenue.
Customer A generated 20% (2023: 21%) and Customer B generated10% (2023: 2%) of the Group’s revenue for the year.
Although the Group is managed as a single business segment, sales revenue of $80.6 million (2023: $59.6 million) can be broken down
into the following sales categories. Propulsion and stabilisation consist of the manufacture of new propellers, shaft lines, gyrostabilisers,
and marine ride control fins. The sales in this category were $47.5 million (2023: $32.9 million). Defence related sales for FY2024 totalled
$20.9 million (2023: $17.0 million) with $3.7 million (2023: $3.9 million) of those sales being both within the defence and propulsion/
stabilization categories. Sales of engineering products and services (non-defence) for FY2024 were $15.8 million (2023: $13.5 million).
NOTE 5: EARNINGS PER SHARE
Basic and diluted earnings per share
2024
2023
Cents per share
Cents per share
Basic earnings per share
5.15
3.03
Diluted earnings per share
5.14
3.03
The earnings and weighted average number of ordinary shares used in the calculation of basic and diluted earnings per share is as follows:
2024 ($)
2023 ($)
Earnings
Earnings from continuing operations
6,985,816
4,112,208
Number
Number
Weighted average number of ordinary shares for the purpose of basic earnings per share
135,727,671
135,719,452
Effect of dilution
210,689
-
Weighted average number of ordinary shares on issue adjusted for the effect of dilution
135,938,360
135,719,452
NOTE 6: DIVIDENDS
2024 ($)
2023 ($)
Fully franked dividends paid
-
-
Unfranked dividends paid
1,737,209
827,878
Total dividends paid
1,737,209
827,878
Balance of franking account at period end adjusted for franking credits arising from the
payment of provision for income tax and dividends recognised as receivables, franking
debits arising from payment of proposed dividends and franking credits may be prevented
from distribution in a subsequent financial year.
-
-
NOTES TO FINANCIAL STATEMENTS
36 VEEM LIMITED
NOTE 7: CASH AND CASH EQUIVALENTS
2024 ($)
2023 ($)
Cash at bank
538,524
2,420,312
Overdraft
(368,766)
-
Cash on hand
800
800
170,558
2,421,112
Cash at bank earns interest at floating rates based on daily bank deposit rates.
Reconciliation to the Statement of Cash Flows:
For the purposes of the statement of cash flows, cash and cash equivalents comprise cash on hand and
at bank and investments in money market instruments, net of outstanding bank overdrafts.
Non-cash financing and investing activities
The Group purchased assets with a value of $1,383,371 (2023: $4,467,094) which were financed through hire purchase.
Cash balances not available for use
All cash balances are available for use.
Reconciliation of profit for the year to net cash flows from operating activities
2024 ($)
2023 ($)
Net profit for the year
6,985,816
4,112,208
Adjusted for non-cash items
Depreciation and amortisation expense
5,368,906
4,082,386
Foreign exchange (gain)/loss
45,961
6,720
Share based payments
70,813
44,100
Changes in operating assets and liabilities
Trade and other receivables
(3,091,778)
(43,639)
Inventories (includes change in progress billings)
(3,572,109)
(5,053,597)
Trade and other payables
1,625,933
520,645
Provisions
31,272
141,862
Current and deferred tax
919,315
750,999
GST payable
(23,392)
152,465
Net cash inflow from operating activities
8,360,737
3,019,848
VEEM LIMITED 37
NOTES TO FINANCIAL STATEMENTS
NOTE 7: CASH AND CASH EQUIVALENTS (CONTINUED)
Changes in liabilities arising from financing activities
Bank loans ($)
Hire Purchase
liability ($)
Lease liability ($)
Total ($)
Balance as at 30 June 2022
5,400,000
4,108,736
12,157,876
21,666,612
Net cash from (used in) financing activities
2,492,141
(1,327,412)
(1,504,517)
(339,788)
Remeasurement of lease liability
-
-
377,825
377,825
Acquisition of plant and equipment by means of
hire purchase
-
4,467,094
-
4,467,094
Balance as at 30 June 2023
7,892,141
7,248,418
11,031,184
26,171,743
Net cash from/(used in) financing activities
(2,124,346)
(1,861,440)
(1,661,225)
(5,647,011)
Acquisition of plant and equipment by means of
hire purchase
-
1,383,371
-
1,383,371
Remeasurement of lease liabilities
-
-
70,998
70,998
Balance as at 30 June 2024
5,767,795
6,770,349
9,440,957
21,979,101
NOTE 8: TRADE AND OTHER RECEIVABLES
2024 ($)
2023 ($)
Trade receivables (a)
13,142,025
10,058,505
Other receivables
62,476
54,219
13,204,501
10,112,724
(a) the credit period on sales of goods and rendering of services is 15-90 days after the month in which they are arise.
Aging of past due but not impaired
2024 ($)
2023 ($)
60 – 90 days
82,935
48,275
90 – 120 days
232,479
110,211
Total
315,414
158,486
Expected credit losses
The Group applies the AASB 9 simplified model of recognising lifetime expected credit losses for all trade receivables as these items do
not have a significant financing component.
In measuring the expected credit losses, the trade receivables have been assessed on a collective basis as they possess shared credit
risk characteristics. They have been grouped based on the days past due and also according to the geographical location of customers.
The expected loss rates are based on the payment profile for sales over the past 48 months before 30 June 2024 and 30 June 2023
respectively as well as the corresponding historical credit losses during that period. The historical rates are adjusted to reflect current
and forwarding looking macroeconomic factors affecting the customer’s ability to settle the amount outstanding.
Trade receivables are written off when there is no reasonable expectation of recovery. Failure to make payments within 180 days
from the invoice date and failure to engage with the Company on alternative payment arrangements are considered indicators of
low reasonable expectation of recovery. During the period $17,317 of receivables were written off (2023: Nil).
Where commercially sensible and available, VEEM Ltd takes out credit insurance against its overseas receivables.
On the above basis, a provision for expected credit losses as at 30 June 2024 is not required as it is not material to
the financial statements (30 June 2023: Nil).
NOTES TO FINANCIAL STATEMENTS
38 VEEM LIMITED
NOTE 9: INVENTORIES
2024 ($)
2023 ($)
Work in progress – over time
8,766,220
7,774,193
Work in progress – point in time
5,214,319
5,194,972
13,980,539
12,969,165
Less: progress billings
(5,110,480)
(7,704,738)
8,870,059
5,264,427
Goods for resale, raw materials and stores
14,563,825
15,673,021
23,433,884
20,937,448
During the year, the Group recognised revenue of $10,314,808 (2023: $7,808,886) in relation to the prior years’ work in progress.
NOTE 10: OTHER ASSETS
2024 ($)
2023 ($)
Prepayments
1,261,681
503,455
Suppliers paid in advance
812,907
831,548
2,074,588
1,335,003
NOTE 11: PROPERTY, PLANT AND EQUIPMENT
Plant and
Equipment
Motor Vehicles
Capital Work in
Progress
Computer
Equipment
Total
($)
($)
($)
($)
($)
As at 30 June 2023
Cost
49,729,406
662,767
397,379
1,822,292
52,611,844
Accumulated depreciation
(29,112,105)
(537,995)
-
(1,621,529)
(31,271,629)
Closing carrying amount
20,617,301
124,772
397,379
200,763
21,340,215
Year ended 30 June 2024
Opening carrying amount
20,617,301
124,772
397,379
200,763
21,340,215
Additions
1,785,567
74,201
798,307
19,993
2,678,068
Transfers
196,910
-
(196,910)
-
-
Depreciation charge
(2,171,166)
(23,876)
-
(74,341)
(2,269,383)
Closing carrying amount
20,428,612
175,097
998,776
146,415
21,748,900
As at 30 June 2024
Cost
51,711,883
736,968
998,776
1,842,285
55,289,912
Accumulated Depreciation
(31,283,271)
(561,871)
-
(1,695,870)
(33,541,012)
Carrying amount
20,428,612
175,097
998,776
146,415
21,748,900
VEEM LIMITED 39
NOTES TO FINANCIAL STATEMENTS
NOTE 12: INTANGIBLE ASSETS
Other Intellectual
Property
Product
Development
Total
($)
($)
($)
As at 30 June 2023
Cost
1,109,269
22,982,490
24,091,759
Accumulated amortisation
(873,745)
(2,196,490)
(3,070,235)
Closing carrying amount
235,524
20,786,000
21,021,524
Year ended 30 June 2024
Opening carrying amount
235,524
20,786,000
21,021,524
Net additions
93,419
2,177,730
2,271,149
Amortisation charge
(133,040)
(1,257,216)
(1,390,256)
Closing carrying amount
195,903
21,706,514
21,902,417
As at 30 June 2024
Cost
1,202,688
25,160,220
26,362,908
Accumulated amortisation
and impairment
(1,006,785)
(3,453,706)
(4,460,491)
Carrying amount
195,903
21,706,514
21,902,417
No impairment loss was recognised in the 2024 financial year (2023: $Nil).
NOTE 13: RIGHT-OF-USE ASSETS
Premises
$
Total
$
As at 30 June 2024
Cost
16,540,187
16,540,187
Accumulated depreciation
(8,314,988)
(8,314,988)
Carrying amount
8,225,199
8,225,199
As at 30 June 2023
Cost
16,469,189
16,469,189
Accumulated depreciation
(6,607,437)
(6,607,437)
Carrying amount
9,861,752
9,861,752
2024 ($)
2023 ($)
Opening balance
9,861,752
11,132,417
Remeasurement of lease liability (a)
70,998
377,825
Depreciation
(1,707,551)
(1,648,490)
Closing balance
8,225,199
9,861,752
(a) A rent review during the 2023 financial year required a re-measurement of the lease liability
which resulted in an increase in the lease liability and right of use asset of $70,998.
NOTES TO FINANCIAL STATEMENTS
40 VEEM LIMITED
NOTE 14: TRADE AND OTHER PAYABLES (CURRENT)
2024 ($)
2023 ($)
Trade payables (a)
6,286,170
4,878,254
Net GST payable
312,957
336,349
Other creditors
1,402,792
1,184,775
8,001,919
6,399,378
(a) Trade payables are non-interest bearing and are normally settled on 30-day terms.
Information regarding the interest rate, foreign exchange and liquidity risk exposure is set out in Note 20.
NOTE 15: BORROWINGS
2024 ($)
2023 ($)
Current
Floating rate loan facility (a)
-
1,200,000
Trade Loan Facility (b)
767,795
1,692,141
Hire purchase liability
2,390,383
2,114,353
Less: Unexpired charges
(372,942)
(374,339)
2,785,236
4,632,155
Non-current
Loan facility – Daily Rate (c)
5,000,000
5,000,000
Hire purchase liability
5,198,635
6,081,057
Less: Unexpired charges
(445,727)
(572,653)
9,752,908
10,508,404
(a) The Group had a Floating Rate Loan Facility with a limit of $1,200,000 at 30 June 2023. The Loan Facility was
repaid during the period with the final payment in June 2024. Interest was charged at the base rate plus 1.30%
per month and a line fee of 0.50% per annum of the Facility Limit was paid quarterly in arrears.
(b) The Group entered into a trade loan facility in the prior year to support it’s import trade arrangements. The
facility has a limit of $2,000,000 and each drawdown is repayable in 150 days. Interest is at the base rate plus
1.25% per annum. A line fee of 0.75% per annum of the Facility Limit is payable quarterly in arrears.
(c) The Group has a Loan Facility – Daily Rate with a limit of $5,000,000. The Loan Facility is repayable on the termination
date of 1 October 2025. Interest at the base rate plus 1.65% per annum is charged and paid monthly. The interest
rate is currently at 6.00% (June 2023: 5.84%). The facility is fully drawn and is reviewed on an annual basis.
(d) The Group has an Overdraft Facility with a limit of $3,400,000. Interest at the base rate plus 2.60% per annum is
charged monthly. A line fee of 0.50% per annum of the Facility Limit is payable quarterly in arrears. The facility is
reviewed on an annual basis. At 30 June 2024, the Group had drawn $368,766 and had available $3,031,234 of
undrawn overdraft facilities (June 2023: $3,400,000). In addition, there is an Electronic Payments Facility with a limit
of $300,000. At 30 June 2024, the Group had available $300,000 under this facility (June 2023: $300,000).
The facilities are secured by a registered first mortgage over the assets and undertakings of
the Group. The Group complied with all banking covenants during the financial year.
VEEM LIMITED 41
NOTES TO FINANCIAL STATEMENTS
NOTE 15: BORROWINGS (CONTINUED)
Financing facilities available
At balance date, the following financing facilities had been negotiated and were available:
2024 ($)
2023 ($)
Total facilities
•
Overdraft facility
3,400,000
3,400,000
•
Loan facility – Daily Rate
5,000,000
5,000,000
•
Trade Loan Facility
2,000,000
2,000,000
•
Electronic payments facility
300,000
300,000
•
Floating rate loan facility
-
1,200,000
•
Commercial card facility
50,000
50,000
10,750,000
11,950,000
Facilities used at balance date
•
Overdraft facility
368,766
-
•
Loan facility – Daily Rate
5,000,000
5,000,000
•
Trade Loan Facility
767,795
1,692,141
•
Electronic payments facility
-
-
•
Floating rate loan facility
-
1,200,000
•
Commercial card facility
-
-
6,136,561
7,892,141
Facilities unused at balance date
•
Overdraft facility
3,031,234
3,400,000
•
Loan facility – Daily Rate
-
-
•
Trade Loan Facility
1,232,205
307,859
•
Electronic payments facility
300,000
300,000
•
Floating rate loan facility
-
-
•
Commercial card facility
50,000
50,000
4,613,439
4,057,859
Total facilities
•
Facilities used at balance date
6,136,561
7,892,141
•
Facilities unused at balance date
4,613,439
4,057,859
10,750,000
11,950,000
The carrying value of plant and equipment held under hire purchase contracts at 30 June 2024 is $9,306,458 (2023: $8,531,525).
Additions during the year include $1,383,371 (2023: $4,467,094) of plant and equipment held under hire purchase contracts.
NOTES TO FINANCIAL STATEMENTS
42 VEEM LIMITED
NOTE 16: LEASE LIABILITIES
Premises
$
Total
$
30 June 2024
Current liabilities
1,731,766
1,731,766
Non-current liabilities
7,709,191
7,709,191
9,440,957
9,440,957
Premises
$
Total
$
30 June 2023
Current liabilities
1,650,942
1,650,942
Non-current liabilities
9,380,242
9,380,242
11,031,184
11,031,184
Reconciliation
Premises
$
Total
$
Balance at 1 July 2022
12,157,876
12,157,876
Principal repayments
(1,504,517)
(1,504,517)
Remeasurement of lease liability (a)
377,825
377,825
Balance at 30 June 2023
11,031,184
11,031,184
Principal repayments
(1,661,225)
(1,661,225)
Remeasurement of lease liability (a)
70,998
70,998
Closing balance 30 June 2024
9,440,957
9,440,957
The average lease term to expiry is 5 years.
(a) A rent review during the 2023 financial year required a re-measurement of the lease liability which
resulted in an increase in the lease liability and right of use asset of $70,998.
Underlying assets serve as security for the related lease liabilities. A maturity analysis
of future minimum lease payments is presented below:
Lease payments due
30 June 2024
<1 year
$
1-5 years
$
>5 years
$
Total
$
Net present values
1,731,766
7,709,191
-
9,440,957
Interest
298,658
536,864
-
835,522
Lease payments
2,030,424
8,246,055
-
10,276,479
Total cash outflow relating to leases for the period ended 30 June 2024 was $2,018,146 (2023: $1,903,900) of which
$1,661,225 (2023: $1,504,517) related to principal payments and $356,921 (2023: $399,383) related to interest.
VEEM LIMITED 43
NOTES TO FINANCIAL STATEMENTS
NOTE 17: PROVISIONS
2024 ($)
2023 ($)
Current
Annual Leave
2,184,293
2,123,000
Long service leave
1,365,404
1,270,205
After sales
294,061
361,699
Commissioning
121,377
178,960
3,965,135
3,933,864
Non-Current
Lease restoration
100,929
100,929
100,929
100,929
Employee benefits (a)
Balance at beginning of year
3,393,205
3,103,048
Net movements
156,492
290,157
Balance at the end of year - Current
3,549,697
3,393,205
(a) The provision for employee benefits represents annual and long service
leave entitlements accrued.
Provision for restoration
Balance at beginning of year
100,929
100,929
Net movements
-
-
Balance at the end of the year - Non-current
100,929
100,929
Provision for after sales
Balance at beginning of year
361,699
590,497
Net movements
(67,638)
(228,798)
Balance at the end of the year - Non-current
294,061
361,699
Provision for commissioning
Balance at beginning of year
178,960
98,456
Net movements
(57,583)
80,504
Balance at the end of the year - Non-current
121,377
178,960
NOTES TO FINANCIAL STATEMENTS
44 VEEM LIMITED
NOTE 18: ISSUED CAPITAL
(a). Issued and paid up capital
2024 ($)
2023 ($)
135,769,452 (2023: 135,719,452) Ordinary shares issued and fully paid
11,541,213
11,509,613
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of
the Company in proportion to the number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy,
is entitled to one vote, and upon a poll each share is entitled to one vote.
Ordinary shares have no par value and the Company does not have a limited amount of authorised capital.
(b). Movements in ordinary shares on issue
Year to 30 June 2024
Year to 30 June 2023
No.
$
No.
$
Movements in ordinary shares on issue
Opening balance
135,719,452
11,509,613
135,719,452
11,509,613
Issue of shares
50,000
31,600
-
-
Closing balance
135,769,452
11,541,213
135,719,452
11,509,613
NOTE 19: RESERVES
2024 ($)
2023 ($)
Share based payment reserve
108,034
68,821
Cash flow hedge reserve
31,092
(109,795)
Foreign currency translation reserve
2,577
1,218
141,703
(39,756)
Share based payment reserve
The share based payments reserve is used to record the value of equity instruments issued to Directors, employees and qualifying
contractors as part of their remuneration.
During the year the Group had a share-based payment Performance Rights and Options Plan which provided that the Board of the Group
may, from time to time, in its absolute discretion, make an offer to any Eligible Participant to apply for Performance Rights or Options, upon
the terms set out in the Performance Rights and Options Plan and upon such additional terms and conditions as the Board determined.
In exercising that discretion, the Board may have regard to the following (without limitation):
(i)
The Eligible Participant’ s length of service with the Group;
(ii)
The contribution made by the Eligible Participant to the Group;
(iii) The potential contribution of the Eligible Participant to the Group; or
(iv) Any other matter the Board considers relevant.
The share-based payment reserve comprises the cumulative share-based payment expense recognised in the Statement of Profit
or Loss and Other Comprehensive Income in relation to equity-settled options and share rights issued but not yet exercised.
The fair value of share rights subject to a market condition is determined at grant date using a trinomial valuation model. The values
calculated do not take into account the probability of rights being forfeited prior to vesting, as VEEM Ltd revises its estimate of the
number of share rights expected to be eligible to vest at each reporting date.
VEEM LIMITED 45
NOTES TO FINANCIAL STATEMENTS
NOTE 19: RESERVES (CONTINUED)
FY 2022 Performance Rights
Grant date
Vesting date
Expiry date
Beneficiary
Balance at 1
July 2023
Granted
during
period
Exercised
during
period
Forfeited
/ lapsed
during
period
Balance 30
June 2024
6 Jul 2021
6 Jul 2022
14 Aug 2024
D Rich
50,000
-
(50,000)
-
-
6 Jul 2021
6 Jul 2023
14 Aug 2024
D Rich
50,000
-
-
-
50,000
6 Jul 2021
6 Jul 2024
14 Aug 2024
D Rich
50,000
-
-
-
50,000
The share rights will vest on or after the vesting date upon the 30-day Volume Weighted Share Price of the company being $1.50, $2.00,
$2.50 for tranches 1-3 respectively provided the beneficiary is still employed by the Group. All share rights have an accelerated vesting
condition on a change of control event at any time up to expiry.
Valuation assumptions
Tranche 1
Tranche 2
Tranche 3
Valuation Date
6-Jul-21
6-Jul-21
6-Jul-21
Spot Price ($)
$1.34
$1.34
$1.34
Exercise Price ($)
nil
nil
nil
Expected future volatility (%)
50.14%
50.14%
50.14%
Risk free rate (%)
0.19%
0.19%
0.19%
Dividend yield (%)
1%
1%
1%
Fair value per right
$0.632
$0.49
$0.382
FY 2024 Performance rights
Grant date
Vesting date*
Expiry date
Holder
1 Jul 2023
Granted
during
period
Exercised
during
period
Forfeited
/ lapsed
during
period
30 June
2024
11 Dec 2023
11 Jan 2027
11 Jan 2027
D Rich
-
108,135
-
-
108,135
11 Dec 2023
11 Jan 2027
11 Jan 2027
D Rich
-
108,135
-
-
108,135
11 Dec 2023
11 Jan 2027
11 Jan 2027
D Rich
-
108,168
-
-
108,168
11 Dec 2023
11 Jan 2027
11 Jan 2027
T Raman
-
102,554
-
-
102,554
11 Dec 2023
11 Jan 2027
11 Jan 2027
T Raman
-
102,554
-
-
102,554
11 Dec 2023
11 Jan 2027
11 Jan 2027
T Raman
-
102,584
-
-
102,584
*Latest vesting date – refer below for details.
The share rights will vest as follows:
1.
Tranche 1: 12 months after date of issue and the 5-day volume weighted average share price (VWAP) of the Company
has reached $1.07. This can occur at any point to expiry.
2.
Tranche 2: 24 months after date of issue and the 5-day VWAP of the Company has reached a price which is 25% higher than the
higher of (i) the 5-day VWAP up to and including the date that is 12 months from the date of issue; or (ii) $1.07. This can occur at
any point to expiry.
3.
Tranche 3: 36 months after date of issue and the 5-day VWAP of the Company has reached a price which is 25% higher than the
higher of (i) the 5-day VWAP up to and including the date that is 24 months from the date of issue; or (ii) $1.07. This can occur at
any point to expiry.
Valuation assumptions
Tranche 1
Tranche 2
Tranche 3
Valuation Date
11- Dec-23
11- Dec-23
11- Dec-23
Spot Price ($)
$0.89
$0.89
$0.89
Exercise Price ($)
nil
nil
nil
Expected future volatility (%)
63.2%
63.2%
63.2%
Risk free rate (%)
3.95%
3.95%
3.95%
Fair value per right
$0.580
$0.519
$0.519
During the period a share-based payment expense of $70,813 was recorded (2023: $44,100).
NOTES TO FINANCIAL STATEMENTS
46 VEEM LIMITED
NOTE 19: RESERVES (CONTINUED)
Cash flow hedge reserve
This reserve records the portion of the gain or loss on hedging instruments in cash flow hedges that are determined to be effective hedges.
Foreign currency translation reserve
This reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries.
NOTE 20: FINANCIAL INSTRUMENTS
Capital risk management
The Group manages its capital to ensure it will be able to continue as a going concern while maximising the return to stakeholders
through the optimisation of the debt and equity balance.
The capital structure of the Group consists of debt, cash and cash equivalents and equity attributable to equity holders of the Group,
comprising issued capital and retained earnings.
The Group is not subject to externally imposed capital requirements.
Operating cash flows are used to maintain and expand operations, as well as to make routine expenditures such as tax, dividends and
general administrative outgoings.
Gearing levels are reviewed by the Board on a regular basis in line with budgets and forecasts, the cost of capital and the risks associated
with each class of capital.
Categories of financial instruments
2024 ($)
2023 ($)
Financial assets
Cash and cash equivalents
170,558
2,421,112
Trade and other receivables
13,204,501
10,112,724
Financial liabilities
Trade and other payables
8,001,919
6,399,378
Floating rate loan facility
-
1,200,000
Trade loan facility
767,795
1,692,141
Loan facility – Daily Rate
5,000,000
5,000,000
Hire purchase liability
6,770,349
7,248,418
Lease liability
9,440,958
11,031,184
Derivative liability
77,638
169,521
Financial risk management objectives
The Group is exposed to market risks (including foreign currency risk, fair value risk and interest rate risk), credit risk and liquidity risk.
Foreign currency risk management
The Group undertakes certain transactions denominated in foreign currencies, hence exposures to exchange rate fluctuations arise.
The Group’s main exposures are to US Dollar (USD), Euro (EUR) and Great British Pound (GBP) currency fluctuations impacting cash
on hand, debtors and creditors. VEEM has a global supply program and a large portion of the USD and GBP exposures are reduced by
the Group’s operations having a natural hedge with materials purchased and sold in the same currency, with the major exposure being
to the US Dollar exchange rate.
Propeller sales are denominated 42% in USD (2023: 37%), 11% in GBP (2023: 11%) and 12% in EUR (2023: 10%) hence increases in
propeller sales will increase exposure to exchange rate movements. As all gyrostabiliser sales are in USD, and only part of the costs
provides a natural hedge, the exposure to USD will increase in line with gyrostabiliser revenue increases.
VEEM LIMITED 47
NOTES TO FINANCIAL STATEMENTS
NOTE 20: FINANCIAL INSTRUMENTS (CONTINUED)
The Board has adopted a policy of hedging net foreign currency exposures using forward contracts. As at 30 June 2024 there were
forward exchange contracts in place for USD2,174,825; EUR150,000 and GBP460,000 (30 June 2023: USD 3,732,250, EUR 400,000 and
GBP 230,000). For fair value hedges, any gain or loss from ineffective hedging instruments at fair value is adjusted against the carrying
amount of the hedged item and recognised in profit or loss. There is a derivative liability of $77,638 (30 June 2023: $169,521) recorded
in relation to these forward exchange contracts recorded at fair value, the fair value is a Level 2 input in the fair value hierarchy.
Cash ($)
Receivables ($)
Payable ($)
Total Asset
/(Liability) ($)
USD
333,742
1,326,636
(133,156)
1,527,222
•
Impact of a 5% increase to profit or loss
(76,361)
•
Impact of a 5% decrease to profit or loss
76,361
EUR
47,999
289,700
(69,912)
267,787
•
Impact of a 5% increase to profit or loss
(13,389)
•
Impact of a 5% decrease to profit or loss
13,389
GBP
1,200
519,488
(492,355)
28,333
•
Impact of a 5% increase to profit or loss
1,416
•
Impact of a 5% decrease to profit or loss
(1,416)
The Group also manages market risk generally by keeping abreast of factors affecting its market
on a continual basis. Business improvement practices continually evolve.
Interest rate risk management
The Group is exposed to interest rate risk as it borrows funds at both fixed and floating interest rates. The risk is managed by the Group
by maintaining an appropriate mix between fixed and floating rate borrowings.
The Group’s exposures to interest rate risk on financial assets and financial liabilities are detailed in the interest rate risk sensitivity analysis
section of this note.
Interest rate risk sensitivity analysis
The sensitivity analyses below have been determined based on the exposure to interest rates for non-derivative instruments at the
balance date and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting
period. A 100 basis point (2023: 100 basis points) increase or decrease has been used to assess the sensitivity to interest rate risk as
this represents management’s assessment of the potential change in interest rates.
If interest rates had been 100 basis points higher or lower throughout the year, and all other variables were held constant, the Group’s
net profit would increase by $57,678 and decrease by $57,678 (2023: $78,921) respectively. This is attributable to the Group’s exposure
to interest rates on its variable rate borrowings.
The Group’s sensitivity to interest rates on its variable rate debt instruments has reduced as the level of variable rate debt has reduced
since 30 June 2023. Interest rates on Hire Purchase agreements are fixed for the term of the agreement. New Hire Purchase agreements
entered into during the year were at higher interest rates that the prior year reflecting the increase in interest rate over the year.
Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The
Group has adopted a policy of only dealing with creditworthy counterparties, and obtaining sufficient collateral or credit insurance where
appropriate, as a means of mitigating the risk of financial loss from defaults. The Group conducts due diligence on all counterparties before
extending them credit including utilising information supplied by independent rating agencies where readily available and, if not available,
the Group uses publicly available financial information.
The Group’s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions
concluded is spread amongst approved counterparties where appropriate. Credit exposure is controlled by counterparty limits that are
reviewed and approved by management annually.
The Group does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar
characteristics. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with
high credit ratings assigned by international credit rating agencies.
Where commercially sensible and available, VEEM Ltd takes out credit insurance against its overseas receivables and
selected Australian receivables.
The carrying amount of financial assets recorded in the financial statements, net of any allowance for losses, represents the
Group’s maximum exposure to credit risk without taking account of the value of any collateral obtained.
NOTES TO FINANCIAL STATEMENTS
48 VEEM LIMITED
NOTE 20: FINANCIAL INSTRUMENTS (CONTINUED)
Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the Board of Directors, who have built an appropriate liquidity risk
management framework for the management of the Group’s short, medium and long-term funding and liquidity management
requirements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities,
by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Included
in note 15 is a listing of additional undrawn facilities that the Group has at its disposal as part of its management of liquidity risk.
The following table details the Group’s expected contractual maturity for its non-derivative financial liabilities. These
have been drawn up based on undiscounted contractual maturities of the financial liabilities based on the earliest
date the Group can be required to repay. The tables include both interest and principal cash flows.
1 year or less
1–5 years
5+ years
30 June 2024
%
$
$
$
Non-interest bearing – Trade and other payables
8,001,920
-
-
Fixed interest rate – Hire purchase liabilities
6.73
2,390,383
5,198,635
-
Fixed interest rate – Lease liabilities
3.45
2,030,424
8,246,055
-
Loan facility – Daily Rate
6.00
-
5,000,000
-
Trade Loan Facility
6.53
767,795
-
-
Floating rate loan facility
5.64
-
-
-
Bank overdraft
6.93
368,766
13,559,288
18,444,690
-
1 year or less
1–5 years
5+ years
30 June 2023
%
$
$
$
Non-interest bearing – Trade and other payables
6,399,378
-
-
Fixed interest rate – Hire purchase liabilities
6.22
1,740,014
5,508,404
-
Fixed interest rate – Lease liabilities
3.45
1,650,942
9,380,242
-
Loan facility – Daily Rate
5.84
-
5,000,000
-
Trade Loan Facility
6.54
1,692,141
-
-
Floating rate loan facility
5.47
1,200,000
-
-
12,682,475
19,888,646
-
Fair value measurement
The directors consider that the carrying value of the financial assets and liabilities as recognised in the financial statements approximate
their fair values.
VEEM LIMITED 49
NOTES TO FINANCIAL STATEMENTS
NOTE 20: FINANCIAL INSTRUMENTS (CONTINUED)
Future minimum payments under hire purchase contracts together with the present
value of the net minimum contract payments are as follows:
2024 ($)
2023 ($)
Hire purchase commitments payable
- within one year
2,390,382
2,114,353
- after one year but not more than five years
5,198,635
6,081,057
Minimum hire purchase payments
7,589,017
8,195,410
Less: Unexpired charges
(818,668)
(946,992)
Present value of net minimum lease payments
6,770,349
7,248,418
Represented by:
Current
2,017,441
1,740,014
Non-current
4,752,908
5,508,404
6,770,349
7,248,418
Capital commitments
At 30 June 2024 the Group had $260,947 of capital commitments (2023: $786,453).
NOTE 21: RELATED PARTY DISCLOSURE
The Group’s related parties include key management personnel and their related entities as described below.
The aggregate compensation for Directors and other key management personnel of the Group are set out below:
2024 ($)
2023 ($)
Short-term employee benefits
1,986,295
1,516,890
Long term benefits
97,989
127,798
Share based payments
70,813
44,100
2,155,097
1,688,788
Key management personnel transactions
The Group has two lease agreements with Voyka Pty Ltd, an entity controlled by an entity related to Mr Mark Miocevich and Mr Brad
Miocevich. The Group pays Voyka Pty Ltd current monthly rent of $169,419 monthly excluding GST which is exclusive of any outgoings
including rates, taxes, insurance premiums and maintenance costs. The leases end in 2029 and are on commercial terms.
During the year Mr Mark Miocevich purchased goods and services worth $7,399 (2023: $57,016). An entity related to Mr Brad Miocevich
provided services of $19,276 (2023: $2,898) and purchased goods and services worth $1,242 (2023: $1,964). All these orders were on
normal commercial terms.
Lumos Marketing, which is owned by a related party of Mr Mark Miocevich, provided $92,170 (2023: $77,969) of marketing services to
the Group on normal commercial terms.
Qback Pty Ltd, which is part owned by a related party of Mr Mark Miocevich, provided $13,200 (2023: $nil) of corporate services to
the Group on normal commercial terms.
NOTES TO FINANCIAL STATEMENTS
50 VEEM LIMITED
NOTE 22: SUBSIDIARIES AND JOINT VENTURES
Name of subsidiary /
joint venture
Principal activity
Place of incorporation
and operation
Proportion of ownership interest and
voting power held by the Group
2024
2023
Microtherm Pty Ltd
Research and development into
the treating of liver cancer with
multiple heat sources.
Australia
50%
50%
VEEM Marine
(Europe) B.V.
Marketing, sales and
after-sales service of marine
propulsion and stabilisation
products and systems
Netherlands and Europe
100%
100%
Microtherm Pty Ltd did not have any transactions during the financial year or balances at 30 June 2024 and has not been consolidated.
Work on the project was previously conducted within the parent entity. $0.5 million pre-tax and $0.4 million post-tax) has been amortised
in FY24 in relation to this project and there are no balances carried forward.
NOTE 23: AUDITOR’S REMUNERATION
The auditor of VEEM Limited is HLB Mann Judd.
2024 ($)
2023 ($)
Audit or review of the financial statements
102,640
100,356
Tax compliance services
16,095
19,850
Other services
8,000
-
126,735
120,206
Other services provided by network firms of the auditor
HLB Den Hartog
13,068
4,549
VEEM LIMITED 51
NOTES TO FINANCIAL STATEMENTS
NOTE 24: SUBSEQUENT EVENTS
No matters or circumstances have arisen since the end of the financial year which have significantly affected or may significantly affect the
operating of the Group, the results of those operations, or state of affairs of the Group in future financial years apart from those listed below:
1.
On 20 August 2024 the Company declared an unfranked ordinary dividend of $1,045,425 representing $0.0077 per share.
NOTE 25: CONTINGENCIES
The Group has no material contingent liabilities or assets as at 30 June 2024 (2023: $Nil).
NOTE 26: PARENT ENTITY INFORMATION
Information relating to VEEM Limited, the parent entity, is detailed below:
2024 ($)
2023 ($)
ASSETS
Current
39,235,547
35,078,875
Non-current
54,727,200
56,558,594
Total assets
93,962,747
91,637,469
LIABILITIES
Current
16,559,205
16,821,777
Non-current
25,190,767
27,963,843
Total liabilities
41,749,972
44,785,620
Net assets
52,212,775
46,851,849
EQUITY
Issued capital
11,541,213
11,509,613
Reserves
139,126
(40,974)
Retained earnings
40,532,436
35,383,210
Total equity
52,212,775
46,851,849
INCOME
Net profit after tax
6,921,055
4,143,413
Total comprehensive income
7,060,181
4,036,059
CONTINGENT LIABILITIES AND COMMITMENTS
Commitments and contingent liabilities identified are as per those detailed within Notes 20 and 25.
GUARANTEES ENTERED INTO BY THE PARENT ENTITY
The parent has not entered into any guarantees in relation to debts of its subsidiaries in the year ended 30 June 2024 (2023: nil).
52 VEEM LIMITED
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
AS AT 30 JUNE 2024
Basis of preparation
The consolidated entity disclosure statement has been prepared in accordance with the s295(3A)(a) of the Corporations Act 2001
and includes the required information for VEEM Limited and the entities it controls in accordance with AASB 10 Consolidated
Financial Statements.
Tax Residency
S295(3A)(vi) of the Corporations Act 2001 defines tax residency as having the meaning in the Income Tax Assessment Act 1997.
The determination of tax residency may involve judgement as there are different interpretation that could be adopted and which
could give rise to different conclusions regarding residency.
In determining tax residency , the Group has applied the following interpretations:
Australian Tax Residency
Current legislation and judicial precent has been applied, including having regard to the Tax Commissioner’s public guidance.
Foreign tax residency
Where appropriate, independent tax advisers have been engaged to assist in the determination of tax residence to ensure
applicable foreign tax legislation has been complied with.
Name of Entity
Type
Participation
in JV
Country of
incorporation
Ownership
Residency
Foreign
jurisdiction
VEEM Ltd
Body Corporate
n/a
Australia
n/a
Australian
n/a
VEEM Marine (Europe) B.V.
Body Corporate
n/a
Netherlands
100%
Foreign
Netherlands
Microtherm Pty Ltd
Body Corporate
Participant in JV
Australia
50%
Australian
n/a
VEEM LIMITED 53
DIRECTORS’ DECLARATION
1.
In the opinion of the Directors of VEEM Limited (the ‘Company’):
a.
the accompanying financial statements and notes are in accordance with the Corporations Act 2001 including:
i.
giving a true and fair view of the Group’s financial position as at 30 June
2024 and of its performance for the year then ended; and
ii.
complying with Australian Accounting Standards, the Corporations Regulations 2001,
professional reporting requirements and other mandatory requirements.
b.
the consolidated entity disclosure statement is true and correct.
c.
there are reasonable grounds to believe that the Company will be able to pay
its debts as and when they become due and payable.
d.
the financial statements and notes thereto are in accordance with International Financial
Reporting Standards issued by the International Accounting Standards Board.
2.
This declaration has been made after receiving the declarations required to be made to the Directors in
accordance with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2024.
This declaration is signed in accordance with a resolution of the board of Directors.
Mark David Miocevich
Managing Director
Dated this 21st Day of August 2024
DIRECTORS’ DECLARATION
54 VEEM LIMITED
INDEPENDENT AUDITOR’S REPORT
INDEPENDENT AUDITOR’S REPORT
INDEPENDENT AUDITOR’S REPORT
To the Members of VEEM Ltd
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of VEEM Ltd (“the Company”) and its controlled entities (“the Group”),
which comprises the consolidated statement of financial position as at 30 June 2024, the consolidated
statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity
and the consolidated statement of cash flows for the year then ended, notes to the financial statements,
including material accounting policy information, the consolidated entity disclosure statement and the
directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
(a) giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its financial
performance for the year then ended; and
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Group in accordance with the auditor independence requirements
of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (“the Code”) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
VEEM LIMITED 55
INDEPENDENT AUDITOR’S REPORT
Key Audit Matter
How our audit addressed the key audit matter
Carrying amount of the intangible asset
(product development expenditure)
Note 12 of the financial report
The Group has an intangible asset in relation to
capitalised expenditure on the development of
gyroscopic stabilizers (“gyrostabilizer”).
The development expenditure of $21.7 million is
considered to be a key audit matter, given the size of
the balance, as well as the specific criteria that have
to be met for capitalisation.
Additionally, determining whether there is any
indication of impairment requires management
judgement and assumptions which are affected by
future market or economic developments.
Our procedures included but were not limited to the
following:
-
We assessed the recognition criteria for this
intangible
asset
by
challenging
the
key
assumptions used and estimates made in
capitalising
development
costs,
including
management’s assessment of the stage of the
project in the development phase and the
accuracy of costs included;
-
We substantively tested a sample of additions to
ensure the recognition criteria was met;
-
We considered management’s assessment of
whether any indicators of impairment were
present by understanding the business rationale
for projects and performing reviews for indicators
of impairment;
-
We
ensured
management
applied
an
appropriate
amortisation
method
and
amortisation period to this finite life intangible;
and
-
We assessed the adequacy of the Group’s
disclosures in the financial report.
Revenue Recognition
Note 2 of the financial report
The Group has two distinct categories of revenue
being
revenue
with
performance
obligations
recognised at a point in time and revenue with
performance obligations recognised over time.
We focused on this area as a key audit matter due to
the number and type of estimation events that may
occur over the course of a contract life, leading to
complex and judgemental revenue recognition and
the direct impact on profit.
Our procedures included but were not limited to the
following:
-
We examined and tested the Group’s key
controls over revenue and related work-in-
progress;
-
We assessed a sample of the Group’s key
contracts to determine if we concurred with
management’s assessment of performance
obligations, the transaction price and any
contract liabilities that may arise, the allocation
of the transaction price, and when to recognise
revenue, either at a point in time, or over time;
-
For a sample of contracts designated for over
time recognition, we assessed the methodology
and accuracy of recognising profit at the stage of
completion at balance date;
-
We substantiated revenue transactions on a
sample basis by agreeing the transaction to the
customer’s contract, purchase order, sales
invoice, delivery docket, customer certification
report, and bank receipt, where relevant;
-
We tested the appropriateness of progress
claims on a sample basis; and
-
We assessed the adequacy of the Group’s
disclosures in the financial report.
56 VEEM LIMITED
INDEPENDENT AUDITOR’S REPORT
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2024, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report, or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of:
(a) the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001; and
(b) the consolidated entity disclosure statement that is true and correct in accordance with the Corporations
Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
(c)
the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view and is free from material misstatement, whether due to fraud or error; and
(d) the consolidated entity disclosure statement that is true and correct and is free from material
misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations,
or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of this
financial report.
VEEM LIMITED 57
INDEPENDENT AUDITOR’S REPORT
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the audit. We also:
−
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
−
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
−
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
−
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the financial report or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Group to cease to continue as a going concern.
−
Evaluate the overall presentation, structure and content of the financial report, including the disclosures,
and whether the financial report represents the underlying transactions and events in a manner that
achieves fair presentation.
We communicate with the directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats
or safeguards applied.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication.
REPORT ON THE REMUNERATION REPORT
Opinion on the Remuneration Report
We have audited the Remuneration Report included within the Directors’ Report for the year ended 30 June
2024.
In our opinion, the Remuneration Report of VEEM Ltd for the year ended 30 June 2024 complies with Section
300A of the Corporations Act 2001.
58 VEEM LIMITED
INDEPENDENT AUDITOR’S REPORT
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with Section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
HLB Mann Judd
D B Healy
Chartered Accountants
Partner
Perth, Western Australia
21 August 2024
VEEM LIMITED 59
SHAREHOLDERS INFORMATION
SHAREHOLDERS INFORMATION
Additional information required by the Australian Securities Exchange Ltd Listing Rules and not
disclosed elsewhere in this report. This information is current as at 9 September 2024.
Twenty Largest Shareholders
Rank
Name
Units
% Units
1
VEEM CORPORATION PTY LTD
68,135,593
50.18
2
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
23,574,138
17.36
3
CITICORP NOMINEES PTY LIMITED
7,308,092
5.38
4
UBS NOMINEES PTY LTD
5,184,790
3.82
5
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
2,404,907
1.77
6
HGL INVESTMENTS PTY LTD
1,250,000
0.92
7
BNP PARIBAS NOMINEES PTY LTD
1,072,381
0.79
8
H&G HIGH CONVICTION LIMITED
925,000
0.68
9
MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED
836,204
0.62
10
BNP PARIBAS NOMINEES PTY LTD
835,180
0.62
11
H&G HIGH CONVICTION LIMITED
825,000
0.61
12
H&G INVESTMENT MANAGEMENT LTD
800,000
0.59
13
MRS STACEY-LEE SEGAL
540,000
0.40
14
BOND STREET CUSTODIANS LIMITED
520,000
0.38
15
VELKOV FUNDS MANAGEMENT PTY LTD
510,000
0.38
16
WEEWAC PTY LTD
479,000
0.35
17
BOND STREET CUSTODIANS LIMITED
350,000
0.26
18
ACRES HOLDINGS PTY LTD
335,000
0.25
19
AVIATO INVESTMENTS PTY LTD
325,000
0.24
20
REDBROOK NOMINEES PTY LTD
325,000
0.24
Totals: Top 20 holders of ORDINARY FULLY PAID SHARES (Total)
116,535,285
85.83
Total Remaining Holders Balance
19,234,167
14.17
Marketable Parcels
Number of shareholders holding less than a marketable parcel of ordinary shares is 96.
Voting Rights
Every ordinary shareholder present in person or by proxy at meetings of shareholders shall have one vote for every share held.
Option holders and Rights holders have no voting rights until the options or rights are exercised.
60 VEEM LIMITED
SHAREHOLDERS INFORMATION
Substantial shareholders
The following shareholders are considered substantial shareholders:
•
VEEM Corporation Pty Ltd ATF The Miocevich Family Trust
50.18% of the issued ordinary shares
•
Perennial Value Management Limited
13.74% of the issued ordinary shares
Restricted securities
There are no restricted securities.
Options and performance Rights
There are no options on issue. Performance rights on issues are as disclosed in note 19 of the financial report.
Share buy backs
There is no current on-market share buyback.
Corporate Governance Statement
The Company’s 2024 Corporate Governance Statement is available on the Company’s website at www.veem.com.au.
Distribution of of equity security holders
Range
Total holders
Units
% Units
1 - 1,000
386
222,332
0.16
1,001 - 5,000
552
1,545,907
1.14
5,001 - 10,000
266
2,036,810
1.50
10,001 - 100,000
344
10,293,385
7.58
100,001 Over
52
121,671,018
89.62
Total
1,600
135,769,452
100.00
VEEM LIMITED 61
62 VEEM LIMITED
SHAREHOLDERS INFORMATION
VEEM LTD
ACN 008 944 009
22 Baile Rd,
Canning Vale WA 6155
Telephone:
+61 8 9455 9355
Email:
veem@veem.com.au
Website:
www.veem.com.au
/veem_ltd
@veemltd