Edison Investment Research - VECTION TECHNOLOGIES LTD (VR1) Vection Technologies - Moving from niche to mainstream markets

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Edison Investment Research

Richard Williamson

Vection Technologies - Moving from niche to mainstream markets

Vection’s Q324 update showed strong double-digit growth in revenue and cash receipts, driven by multiple contract wins, including its largest contract to date with an existing defence customer. A swing to positive operating cash flow in Q3 (A$4.1m), coupled with contract wins, validates the company’s streamlined sales structure, designed to bolster operational efficiency. Cash generated also supported a quarter-on-quarter reduction in debt. Management is seeing early positive signs by enhancing the platform’s compatibility with Apple Vision Pro, potentially unlocking a key growth avenue from rising enterprise adoption among large global players.

30/04/2024 1 EN

Underlying

VECTION TECHNOLOGIES LTD

Servtech Global Holdings is engaged in providing software services and administrative support for real estate and finance related operations.

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AU0000067522 Australia

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Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts

Richard Williamson

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Vection Technologies - Moving from niche to mainstream markets

Vection Technologies - Contract wins underpin strong start to H224

Vection Technologies - Record half and strong H2 visibility

Pan African Resources - Upgraded FY24 production guidance

Alkane Resources - Kaiser takes on the World

Alpha Bank - Q1 beat, buy-back proposal

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