Many companies had financial issues during the FY20 due to a...

Many companies had financial issues during the FY20 due to a tiny virus, that disrupted the world economy.

from the outlook statement, it seems as goods and supply chains are moving freely again, and shipbuilders in Europe n USA have resumed operation, the defence submarine contract with ASC is delivering the majority of its 9m contract this year.

All seem positive and growing for the current FY particularly with the new orders for the Gyro.


OUTLOOK

VEEM sees a very positive outlook for all areas of its business. Significantly, the orders for VEEM’s gyros have been increasing at
a rapid rate. This adoption of the gyrostabilizer technology on larger vessels is expected to continue with shipbuilders offering a
VEEM gyrostabilizer as an option and end-users increasing their demand for the enhanced experience that a more stable vessel
provides. The superyacht market take-up of the product is expected to increase rapidly as more vessels with gyrostabilizers join
the global fleet and word spreads as to the effectiveness of the stabilization.

The commercial market has been slower to adopt the technology, however through manufacturers like Damen, the crew transfer
and offshore supply vessel markets are now being provided with real examples of how the additional stabilization can enhance
the commercial argument for installing a gyrostabilizer through more operating days and safer, more efficient operation. We
expect the take up of gyrostabilizers on commercial vessels to increase through FY2021 and beyond.

Although VEEM has one of its gyrostabilizers installed on a fisheries patrol vessel, the wide use of gyrostabilization for defence
vessels, although well supported by operational enhancement and force multiplication arguments, is expected to mature over a
longer period of time due to the conservative nature of this industry. VEEM will continue to educate the defence industry on the
product with a longer-term view to wide-spread take-up.

The propulsion business is expected to continue to grow, both organically for propellers and through new product innovation with
shaftlines. Propulsion is an area of innovation for VEEM with a focus on finding further ways to make the world-leading propellers
more efficiently which will allow VEEM to continue to offer the premium product at reasonable prices while maintaining gross
margins.

FY2021 will be a solid year for defence with the bulk of the $9 million submarine component contract with ASC being delivered.
VEEM continues to win defence-related contracts where casting and precision engineering is required and this is expected to
grow, particularly when the government’s increased drive for local content on naval vessels in particular bears fruit.

VEEM’s engineering products and services business continues to bid on work across the country where utilisation of the
Company’s foundry and precision machining capability enables VEEM to provide specialist solutions for customers.

VEEM’s forever pipe is an example of this and is expected to increase its presence in overseas markets. VEEM is continuing to innovate
to improve its product offering in this area. In addition to this, maintaining the engineering capability also supports the marine and
defence businesses.

The outlook remains, as previously mentioned, subject to the future impacts of the COVID-19 pandemic