They might have significant revenue, but if they can’t make a decent profit from it they are in trouble. I feel revenue will decrease over the next 6-12 months or at the least plateau. Therefore, it is incumbent upon the board / senior management to get costs under control in order to make a decent profit and repay debt.
If you look at larger legal, accountancy and engineering firms / practices, they mostly have an ownership / management structure composed of lawyers, accountants and engineers respectively sourced from within. They usually have a Managing Partner working with a board of partners who work in the business (and own shares in the company). In short the management of these companies have skin in the game and years of industry based experience to draw upon. Veris’s senior management does not seem to have this Surveying experience. The Veris board have a strategy of aggregating disparate survey businesses into a listed entity ( a first in Australia) but they lack survey industry knowledge and they do not seem to have experience in consolidating/ streamlining disparate business units into a single efficient corporate structure.
VRS Price at posting:
4.7¢ Sentiment: Sell Disclosure: Not Held
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