The Veem Ltd (ASX: VEE) share price has taken off today after the company provided a gyro sales update.
At the time of writing, the marine technology company's shares are up 7.21% to 92 cents. However, despite the strong gains made today, its shares are down by more than 20% in a month.
Veem provides sales update
The Veem share price is pushing ahead after the company announced a strong order book since its 17 November update.
In today's release, Veem advised that it has received six orders for its gyrostabilisers, worth $2.2 million. This brings the total orders in hand to $5 million, with $1 million expected to be delivered this month.
Veem noted that the order book includes repeat purchases from three prestige boatbuilders for the luxury superyacht market. Namely, the customers are Alia in Europe, and Westport and the United States.
Furthermore, Damen – a Dutch defence, shipbuilding, and engineering conglomerate company – has started a marketing campaign for the use of VEEM Marine gyrostabilisers on its FCS 5009 vessels.
Currently, Veem has a 3-year agreement with Damen for the supply of gyros as an option onboard its FCS workboats.
The company also appointed Dennis Bravenboer as its new head of sales & business development in Europe. Mr Bravenboer will start the role in January 2022 and oversee the European marketing and sales division.
What did the managing director say?
Veem managing director Mark Miocevic commented:
We are pleased, but not surprised, to land these new orders in rapid succession over the last few weeks. Based on our leads and enquiries, we are very confident the orders will continue to increase through the second half of FY2022.
The Damen marketing campaign to introduce and recommend the VEEM Marine gyros, and in particular the VG520SD, to their client base is a great step forward for VEEM in the commercial markets with Damen being such a highly regarded shipbuilder.
We are very pleased to have been able to secure the services of Dennis Bravenboer to drive our European sales and marketing program for VEEM Marine. Dennis' background in the sales and marketing of engineered marine products is outstanding and with our support we expect him to hit the ground running in 2022.
Veem share price summary
The Veem share price has gained almost 40% in the past 12 months and is around 10% higher year-to-date.
Based on the current share price, Veem commands a market capitalisation of $125.54 million, with 135.72 million shares on issue.
