I went back through DMX Asset Management’s monthlies (small-cap manager I like) hunting for ideas and VBC kept popping up as a high-conviction mispricing with improving cash generation, hidden franking/tax assets, and with a software opportunity.

What VBC does

• Verbrec helps big resource and energy companies plan, build and look after their gear (pipelines, plants, power systems).
• They also run and maintain this stuff so it keeps working safely.
• And they sell StacksOn, software that shows a 3D “digital twin” of giant ore stockpiles so miners can load trains/ships faster and hit grade targets.

Why DMX likes VBC

• They fixed a messy first half. The second half ran much better, pointing to about $8m EBITDA and ~$5m NPAT if that pace continues.
• It still looks cheap. With a market value under ~$30m, those earnings imply a very low PE (under ~5-6×) if they can keep that run-rate in FY26.
• It’s making real cash. The company has moved to net cash and brought back a dividend, which means the profits are converting into money in the bank.
• There’s “hidden value.” VBC has roughly $6m of franking credits and about $10m of tax benefits, which can help boost future shareholder returns (e.g., fully-franked dividends) without extra cost.
• A small software kicker. VBC’s StacksOn product is already used by BHP, and a global reseller deal with Datamine should help sell it wider. DMX believes this upside isn’t fully baked into the share price.
• Cleaner, simpler business. They’re selling the training arm for cash, which strengthens the balance sheet and lets management focus on the core engineering work and the software opportunity.
• DMX owns a meaningful stake, which signals confidence and adds a shareholder pushing for sensible capital allocation.

DMX thinks the numbers are improving, the stock is cheap, cash is building, and there’s extra upside from software meaning the share price could re-rate meaningfully if execution continues.