VERI Veris

 

TIDMVERI 
 
RNS Number : 3461O 
Veris PLC 
05 March 2009 
 

Veris plc 
 
 
Trading Update 
 
 
 
 
Veris plc ("Veris" or the "Group") today announces a trading update for the year 
ending 31 December 2008. 
 
 
The Group expects to report profit after tax in excess of EUR4 million for the 
year ended 31 December 2008 on revenues in excess of EUR80 million before taking 
into account the goodwill and intangible impairment of EUR11.2 million arising on 
the write down in value of its Moving and Storage division (the "MS Division"). 
As previously announced, the MS Division was disposed of on 2 March 2009. The 
reported loss after tax after taking into account the impairment provision is 
expected to amount to circa EUR7 million (which includes a goodwill write-off of 
EUR7.4 million and an intangible impairment relating to brands of EUR3.8 million). 
This will give rise to an expected diluted adjusted EPS in excess of 19c per 
share (excluding the impairment provision). 
 
 
Operating losses incurred for the year in the MS Division amounted to EUR1.3 
million and Head Office costs amounted to EUR1.7 million, which equates to 4.2c 
and 5.6c, respectively, of diluted adjusted EPS on an after tax basis. 
 
 
The Group continued to deliver strong cashflow during the period and in addition 
to meeting all bank covenants reduced its net debt position from EUR40.9 million 
as at 31 December 2007 to below EUR30 million as at 31 December 2008.  The Group 
has a 6 year committed facility from its bankers and expects to continue to meet 
its related covenants and obligations. 
 
 
In the financial year ended 31 December 2007 the Group reported profit after tax 
of EUR4.8 million on revenues of EUR65 million representing diluted EPS of 20.9c per 
share. In 2007 the MS Division contributed operating profits of EUR1.4 million. 
 
 
 
 
Update on Strategic Review 
As stated in the Group's announcement of 2 March 2009, following the receipt of 
a number of unsolicited approaches from unconnected 3rd parties investigating 
the possibility of purchasing its Facilities and Property Management business 
(the "FM Division") and the MS Division, the Board is now engaged in a strategic 
review process. 
 
 
As the first step in this process, the Group has successfully disposed of its 
loss making MS Division on 2 March 2009, which is an earnings enhancing 
transaction. 
 
 
The remaining objective of the strategic review is to ensure that Veris pursues 
a strategy which maximises shareholder value over the medium term. The review 
will include investigating the possibility of a disposal of the FM Division on 
price and terms acceptable to the Board. 
 
 
Speaking earlier today, Bernard Farrell Group CEO said; 
"The strategic review will also incorporate a full review of the cost structure 
of the Group and consider the necessity for certain head office costs in an 
environment where the Group is focussing solely on its FM business which has a 
stand alone management team. Furthermore there is likely to be little if any 
acquisition activity in the foreseeable future due principally to a continued 
lack of liquidity in the debt markets, Therefore it is my belief that even if a 
decision is made not to dispose of the FM business significant cost savings may 
result from such a review." 
 
 
Outlook 
In terms of outlook for 2009 and beyond, the Group's core FM Division is 
expected to continue to perform satisfactorily. Going forward the performance of 
the Group at an earnings level will benefit from the cessation of losses in the 
MS Division as a consequence of its disposal and through the implementation of 
cost savings as part of the strategic review.  The Board believes that 
sustainable diluted adjusted EPS for 2009 will exceed the 2008 level. 
 
 
The Group's preliminary results for the year ending 31 December 2008 will be 
announced in early May 2009. 
 
 
For further information 
Contact 
+------------------------------+------------+---------------------------+ 
| Veris plc                    |            |                           | 
+------------------------------+------------+---------------------------+ 
| Bernard Farrell, CEO         | Tel:       | + 353 1 294 7080          | 
+------------------------------+------------+---------------------------+ 
| Q4 Public Relations          |            |                           | 
+------------------------------+------------+---------------------------+ 
| Gerry O'Sullivan             | Tel:       | + 353 87 259 7644         | 
+------------------------------+------------+---------------------------+ 
| Davy Corporate Finance       |            |                           | 
+------------------------------+------------+---------------------------+ 
| Des Carville, Director       | Tel:       | + 353 1 679 6363          | 
+------------------------------+------------+---------------------------+ 
 
 
 
 
 
End 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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