How are VR/AR players Vection and Indoor Skydive Australia faring in 2021?

Summary 

  • Virtual reality (VR) and augmented reality (AR) technologies provide users with hands-on experience in cases where the approach is highly challenging.
  • The market for two technologies is expected to cross the US$160 billion mark by 2025.
  • Vection and Indoor Skydive Australia are two popular ASX players in the VR/AR space.

Virtual Reality (VR) and Augmented Reality (AR) were quite common in fictional movies. However, these technologies have evolved and become a reality with time and are an important part of our lives. Incorporating the technologies has created an environment where a user can have hands-on experience in cases where the approach has been challenging.

Almost all major sectors are using this technology. As a result, market experts anticipate that the AR/VR market will hit the US$162 billion mark by 2025.

On the ASX, two known players from this space are Vection and Indoor Skydive Australia. In this article, we would see how they are position in 2021.

RELATED ARTICLE: ASX Shares riding the VR Wave – Vection Technologies and Indoor Skydive

Vection Technologies Ltd (ASX:VR1)

Vection Technologies Ltd concentrates on real-time technologies for industrial businesses’ digital transformation. Using 3D, VR, AR, Industrial Internet of Things, Artificial Intelligence, Information & Communication Technology (ICT) and CAD solutions, VR1 support businesses to innovate, collaborate and create value.

On 04 August 2021, Vection Technologies announced the completion of the JMC acquisition a day earlier. This acquisition is value accretive, with the Group expected to deliver revenues worth more than AU$10 million.

Last week, VR1 added an extra ~AU$0.5 million in FY2022 TCV within the Healthcare & Pharma and Public Sector & Education sectors. The clients include biopharmaceutical company Swedish Orphan Biovitrum (SOBI), Trenitalia (a train operator in Italy), the Motorvehicle University of Emilia-Romagna and the New York Institute of Technology.

The Company sees a strong pipeline of opportunities in the Healthcare & Pharma sector with companies such as Bios Line Holding Srl, Damor Spa, Cochlear Italia Srl, Postbiotica Srl, Università degli Studi di Pavia and Harmonium Pharma. The Company also launched Healthcare & Pharma Division in March 2021.

Q4 Highlights

  • Cash receipts increased by 215% to ~AU$1 million.
  • VR1 assumed control of Blank Canvas and JMC Group through merger and acquisition.
  • The Company is positioned well to drive unparalleled DX adoption globally.
  • VR1 fully funded to deliver on its growth strategy with AU$6.3 million cash at bank.

While VR1 shares have delivered negative returns since the turn of the year, they have recovered significantly from AU$0.55 on 30 June to AU$0.91 on 5 August.

ALSO READ: Why are the penny stocks VR1, ESK, WOA soaring on the ASX?

Indoor Skydive Australia Group Limited (ASX:IDZ)

Established in 2011, Indoor Skydive Australia Group Limited is a visionary adventure leisure business bringing dedicated experiential, training, and simulation solutions throughout the region.

In Q4 FY2021 ended 30 June 2021, IDZ experienced strong sales in wind tunnel and virtual reality business divisions.

  • Net cash from operating activities was AU$243,000. This net cash includes $64k of creditor payments from previous periods.
  • Cash receipts for the quarter were AU$2.2 million. Thus, bringing YTD cash receipt to AU$8 million.

The Company noted that its business reached capacity during the April school holidays, qualifying the direct digital marketing strategy and customer acquisition. IDZ continued with expansion work for Freak entertainment business. In addition, the Company launched FREAK Education and made investments in the recruitment and training of new workforce throughout the businesses.

IDZ has also invested in facility upgrades and a refresh of the buildings, fittings as well as media systems at both iFLY buildings to enhance its client experience.

IDZ experienced the impact of the pandemic throughout the period because of the lockdown in New South Wales (NSW) and Queensland in the second half of June. Despite the challenges, the Company is well placed to face extended lockdown with a strong cash balance. IDZ would continue to operate its ‘FREAK in a box’ home delivery service throughout NSW.

Although IDZ shares have performed admirably in 2021 with a 35.71% return, they have dropped significantly from the April high of AU$0.033, closing at AU$0.0190 on 5 August.

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