Defence and exclusive global marine contracts swell VEEM profits

Marine manufacturer VEEM has seen revenue jump by a third as defence contracts and exclusive global agreements boost its bottom line.

A major driver of the company’s profits was an agreement signed with Sharrow Engineering for the exclusive worldwide licence to manufacture and sell Sharrow designed propellers for at least 17 years. These propellers will be built at VEEM’s West Australian facility.

The company also added its dominant position in the gyrostabiliser market also strengthened its balances.

It said as it is the world’s only real supplier for the US$1.1 billion market for new large gyrostabilizer, which has high barriers for entry to competitors, it has cornered this segment cornered.

VEEM is also developing demonstrator blades for BAE Systems Australian’s hunter Class Frigate Program.

Successful completion of them in the first half of 2025 will brand VEEM as a qualified supplier, making it one of only two companies in the world capable of this level of precision, it said.

“We’re very pleased to report a 70% increase in NPAT, this comes on the back of a 35% increase in revenue to over $80 million, which is a record for VEEM,” managing director Mark Miocevich said.

“These results were dive by the additional propeller capacity and a significant increase in work hours and productivity.

‘Currently the outlook for Fy25 is that the core business will continue to generate similar levels of activity with several areas of focus aimed at generating growth in revenue through new products, markets and regions.”