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VYSARN LIMITED — Capital/Financing Update 2022
May 4, 2022
66029_rns_2022-05-04_ee160b46-4c2d-47a1-9dec-1c1ab4d31c0f.pdf
Capital/Financing Update
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ASX:VYS
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5 May 2022
Operations And Earnings Update
Vertically integrated water service provider Vysarn Limited (ASX:VYS) (Vysarn)(Company) provides the following update for the full year to 30 June 2022 (FY22).
Operational Update
The recent increase in COVID-19 case numbers in Western Australia in March and April 2022 coupled with the hard border lockdown in Western Australia until early March 2022 has had an impact on the availability of our workforce and client site access which in turn has caused interruptions to operations in the hydrogeological drilling division during the period.
This has consequently led to a reduction in actual and forecast average drill rig utilisation for the January to June period.
Pleasingly, the Company is now experiencing stronger workforce availability, and conditional upon client demand, Vysarn expects a return to full rig utilisation by late June with the resumption of steady state earnings in the hydrogeological drilling division immediately thereafter.
The Company’s test pumping and consultancy divisions have traded in line with expectations during the period.
Guidance update
The Company provides the following update to guidance:
| FY21 | FY22 | ||
|---|---|---|---|
| Actual | Forecast | Percentage Change | |
| Description | ($,000) | ($,000)(1) | (%) |
| Revenue | 25,800 | 44,000 | 71% |
| EBITDA* | 5,008 | 9,000 | 80% |
| EBIT | 1,572 | 4,600 | 193% |
| EBT | 1,137 | 4,100 | 261% |
Notes:
1. Revenue and Earnings forecasts based on no further significant COVID-19 related interuptions
* Original guidance for FY22 was EBITDA $10 miilion to $11 million
Outlook
The Company maintains a strong pipeline of work across water consultancy, hydrogeological drilling and test pumping, as well as continuing to identify ongoing organic and acquisitive growth opportunities. As such, the Company anticipates continued growth in group earnings in FY23.
The ASX announcement has been authorised for release by the Board of Vysarn.
For more information:
James Clement Managing Director E: [email protected]
Vysarn Limited | ABN: 41 124 212 175 | ACN: 124 212 175 | Level 1, 640 Murray St, West Perth, WA 6005 | T +61 (0) 8 6144 9777 | E [email protected] | vysarn.com.au