Vection Technologies Secures $4.2 Million Payment for Defence Contract

Vection Technologies Ltd (ASX: VR1, OTC: VCTNY) announced today the successful receipt of a $4.2 million payment, including the VAT of €2,572,457 for the defence contract awarded on February 12, 2023.

The contract is with a technology service provider focused on cybersecurity and infrastructure security solutions for law enforcement, government agencies and security agencies.

The service is to be ultimately provided to a non-European government.

The scope of this contract involves providing an ICT technology solution that mainly focuses on strengthening cyber and data security for National Security Intelligence purposes.

The company received a payment of $1.3m (€0.8m) from the customer on 1 February 2024 as an initial deposit.

This marks a significant milestone for Vection Technologies, solidifying its position within the defence sector and demonstrating its expertise in delivering innovative solutions.

Phased Payment Structure

The contract follows a phased payment structure, with Vection Technologies receiving an initial customer payment of $1.3 million (including VAT of €769,800) on February 1, 2024.

The remaining balance of $0.7 million (including VAT of €427,743) is expected to be received by the end of April 2024 upon successful contract execution.

Vection Technologies anticipates completing and delivering the project in the third quarter of the 2024 financial year (3QFY24).

Following project delivery, outward supplier cash flows are expected to be remitted in the fourth quarter of FY24 (Q4 FY24).

About Vection Technologies

Vection Technologies is a leading provider of solutions and services that empower businesses to transition from 2D to 3D environments.

They bridge the physical and digital divide, helping organizations leverage the power of 3D data through immersive extended reality (XR) interfaces.

These interfaces enhance collaboration, learning experiences, and sales growth, ultimately delivering tangible benefits to their clients.

Vection Technologies aims to empower businesses with actionable data, leading to time and cost savings, mitigated risks, and a significant competitive advantage.

Financial Highlights and Positive Outlook

Vection Technologies recently reported financial results for the first half of FY24 (1H FY24). Key highlights include:

  • Revenue growth of 38% to $10.9 million.
  • Improved EBITDA performance at $(7.5) million, compared to $(7.7) million in 1H FY23.
  • Closing cash balance of $5.2 million (compared to $9.7 million).
  • Debt at $9.7 million.

The company forecasts substantial revenue growth in the second half of FY24 (2H FY24).

This projection is bolstered by Vection Technologies’ historical performance, with a 217% increase in revenue recorded in 2H FY23 compared to 1H FY23.

The company remains focused on achieving profitability and maximizing cash generation throughout FY24.

This strategy is supported by a robust contract pipeline and ongoing customer acquisitions, ensuring Vection Technologies’ continued growth and success.

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