Australia is growing at a rate faster than developers can handle which is why the big guys are now increasing their resources via partnerships with the little guys, as Veris Australia (ASX: VRS) becomes the latest to be engaged by infrastructure giant John Holland Group.
The 18-month Framework Agreement sees John Holland committing to building their long-term relationship with Veris which has been providing a range of surveying and spatial data services across infrastructure, road and rail projects.
“John Holland and Veris Australia have a proud history of working together on some of Australia’s biggest projects and delivering improvements to Australian communities, and this Agreement will support the further strengthening of this key relationship into the future,” said Veris Australia CEO, Michael Shirley.
“Our national footprint and expertise across a number of different industry sectors is well aligned to support the requirements of John Holland, so it’s pleasing to see this Agreement will facilitate our streamlined engagement on projects.
As a Tier 1 supplier for Government infrastructure projects, John Holland will provide Veris with exposure to some of Australia’s largest builds, including new work as part of the Government’s investment pipeline. This commitment was increased to $15.2 billion in the latest Federal Budget, taking their 10-year commitment to $110 billion.
Not including the work expected to be sent in Veris’ direction from this Framework Agreement, the spatial data specialists have significantly strengthened their project pipeline off the back of COVID-enforced project delay. This includes more than $50 million of work to be executed within the next 12 months, and $150 million over the next 24 months.
For the Half-Year ended 31 December 2021, Veris reported $50.1m in revenue which delivered a 12% pcp increase in EBITDA to $6m. Since September 2020, VRS shares have increased from 2.9c to now be trading around 7c per share.