TIDMVERO 
 
RNS Number : 6441L 
Vero Software PLC 
10 May 2010 
 
                                Vero Software Plc 
                       ("Vero Software" or "the Company") 
 
Preliminary results for the year ended 31 December 2009 
Vero Software Plc, (AIM: VERO), a leading international supplier of software 
solutions for the mould and die sector, announces its preliminary results for 
the year ended 31 December 2009. 
 
 
Financial and operating highlights: 
 
·     Robust performance in particularly challenging trading conditions 
·     EBITDA (earnings before interest, tax, depreciation and amortisation) 
increased by 10% to GBP2.0m (2008: GBP1.8m) 
·     Revenue reduced by 8% to GBP12.8m (2008: GBP13.9m), despite a full year of 
falling demand from the manufacturing sector 
·     Growth in maintenance revenues of 18%, showing the continuing strength of 
recurring revenues 
·     Pre-tax profit of GBP0.6m (2008: GBP0.9m) 
·     Fully diluted earnings per share of 1.94p (2008: 2.27p) 
·     Completion of GBP2.0m re-financing achieved in December, replacing the 
troublesome Fortis loans and restoring working capital headroom 
 
Stephen Palframan, Chairman, commented:  "2009 was the most serious market 
downturn for the Company since its formation in 1988. It has weathered many 
recessions in that period and maintained a growing outlook. The severity of the 
2009 downturn was countered by strong recurring revenues, the use of technology 
as a prime mover in reducing costs and the growing requirement on customers 
during harder times to produce new models of their products". 
 
Enquiries, please contact: 
 
+-------------------------------+-------------------------------+ 
| Don BabbsChief Executive      | Paul ShackletonDaniel Stewart | 
| Vero Software Plc             | & Company plc  020 7776 6550  | 
| 01242 542040                  |                               | 
|                               |                               | 
+-------------------------------+-------------------------------+ 
| Julie RandallFinance Director | Will Henderson  Smithfield    | 
| Vero Software Plc             | 020 7360 4900                 | 
| 01242 542040                  |                               | 
+-------------------------------+-------------------------------+ 
 
 
Chairman's statement 
 
I am pleased to report a stable set of results for 2009 despite trading 
conditions that have been more difficult than any that we have encountered since 
the inception of the Company. 
 
Results 
Turnover reduced by 8% to GBP12.8m (2008: GBP13.9m), although the regional 
breakdown of results varied, with North America faring better than both Europe 
and Asia. The relatively small fall in turnover considering the harsh market 
background is evidence of the strength of Vero Software's recurring revenues. 
 
EBITDA (earnings before interest, tax, depreciation and amortisation) increased 
by 10% to GBP2.0m (2008: GBP1.8m), helped by cost-saving measures taken during 
the year. Operating profit was 24% lower at GBP0.83m (2008: GBP1.09m) and profit 
before tax was 34% lower at GBP0.6m (2008: GBP0.9m), the reduction due mainly to 
increased amortisation and exceptional depreciation on the write down of a 
property. Fully diluted earnings per share were 1.94p (2008: 2.27p). 
 
There was an overall tax credit of GBP132,000 (2008: GBP75,000 charge), largely 
due to R&D tax credits received in Italy. 
 
The earnings and profit figures mentioned above are stated after exceptional 
costs of GBP201,000 which were incurred during the year. These included 
redundancy costs and the exceptional depreciation relating to the property write 
down. 
 
The Company completed the refinancing of its UK loans in December 2009, raising 
GBP2.0m. This was used to repay the Group's outstanding balances with Fortis 
Bank and to improve working capital levels to pre-recession levels. 
 
Offer 
 
On 16th September 2009, the Company announced that it was in talks which may or 
may not lead to an offer for the Company. Discussions with more than one party 
subsequently followed and the Company is pleased to report that negotiations are 
now at an advanced stage and it expects to be able to make an announcement 
within the next two weeks. There can however be no certainty that an offer will 
be made nor as to the terms on which any offer might be made. 
 
Outlook 
 
2009 was the most serious market downturn for the Company since its formation in 
1988. It has weathered many recessions in that period and maintained a growing 
outlook. The severity of the 2009 downturn was countered by strong recurring 
revenues, the use of technology as a prime mover in reducing costs and the 
growing requirement on customers during harder times to produce new models of 
their products. 
 
Although there are some signs of recovery in Europe and China, many of our major 
markets remain cautious, with 2010 investment forecasts in mould and stamping 
technologies remaining at similar levels to last year. Initial 2010 trading 
reflects this continuing lack of market confidence. 
 
The efforts of the long serving staff of Vero Software remain of paramount 
importance for our success and they have proved themselves yet again within the 
extreme environment of 2009. The board of Vero (the "Board") would like to take 
this opportunity to thank them all for their focused contribution during the 
year. 
 
Stephen Palframan 
Chairman10 May 2010 
Chief executive's review 
 
 
Business review 
 
The Company sells software in a market niche that provides mould and die makers 
with the ability to design, simulate, plan, cost and machine their products 
across a wide range of sectors including automotive, aerospace, electronic, 
medical, toys and household goods. Last year, all of these sectors suffered some 
lack of confidence but sales continued to those looking to cut costs and improve 
productivity through software that reduced the resources required to produce the 
necessary moulds and dies. 
 
The downturn was not spread evenly through the regions and while sales in Japan 
and Italy fell with respect to 2008, those in North America, France and UK all 
grew. Even among the sectors supplied the effects were relatively unpredictable, 
with plastic based products doing less well than sheet metal, whilst software 
used solely by the automotive sector surprisingly grew substantially. 
 
The worst hit sectors were those associated with machine tools, where worldwide 
investment in both machines and software were very low causing some of the major 
machine tool producing countries to initiate new incentives. 
 
Software maintenance and service revenues held up well as a result of many 
customers relying on the productivity improvements brought in through new 
releases and the expertise of the product support. 
 
Operating expenses 
As a result of the anticipated fall in revenue, the company took swift action at 
the beginning of 2009 to reduce budgeted operating costs. This was later 
supplemented by a temporary reduction in personnel costs, mostly through short 
time working during the summer and autumn periods. Tight control of expenditure 
led to a 13% reduction in selling expenses before exceptional items. 
Administrative expenses rose by 7% but this was largely as a result of exchange 
rate movements, with the underlying administrative costs in local currency lower 
than in 2008. 
Product development 
 
Product development expenditure of GBP1,303,000 has been capitalised (2008: 
GBP1,008,000) in accordance with International Financial Reporting Standards. 
The Board strongly believes that the continued investment in product development 
is fundamental to current software sales, future growth and customer loyalty. 
 
The product solutions are increasingly being applied to the whole process 
relating to mould and die production and from product design and planning to 
mould performance analysis, building and precision machining. 
 
Taxation and earnings per share 
 
Earnings before, interest, tax, depreciation and amortisation (EBITDA) were 
GBP2.0m, an increase of 10% compared to the previous year (2008: GBP1.8m).  The 
Group also recorded a pre-tax profit after exceptionals of GBP0.6m (2008: 
GBP.0.9m). This reduction was mainly a result of increased amortisation charges 
and an exceptional write down of a property. The Group received a net tax credit 
of GBP0.13m (2008: GBP0.07m charge). The tax credit has arisen mainly because of 
research and development tax credits received in Italy and the UK. Exceptional 
costs of GBP201,000 (2008: GBP445,000) were incurred during the year. These 
included redundancy costs of GBP46,000, a GBP26,000 provision for an onerous 
lease and GBP129,000 exceptional depreciation relating to the write down of a 
property. 
Post tax profit after exceptionals was GBP0.74m (2008: GBP0.85m) and basic 
earnings per share were 2.00p (2008: 2.28p). 
 
Cash flow and net funds 
 
Cash flows from operating activities in 2009 were GBP1.7m compared to GBP1.9m in 
2008. The cash balances at the year end were GBP2.3m (2008: GBP1.6m), with 
GBP1.5m of short-term borrowings (2008: GBP1.5m), resulting in net funds of 
GBP0.87m (2008: GBP0.09m). Net debt reduced to GBP2.2m from GBP2.9m. The Company 
completed a refinancing of its UK loans in December 2009 with an advance of 
GBP2m from the Capital for Enterprise Fund. These funds were used to repay the 
Group's outstanding balances with Fortis Bank and restore working capital levels 
to pre-recession levels. 
 
Interest payments during the year were GBP159,000 (2008: GBP213,000). 
 
Summary 
 
The Company proved to be fairly resilient to a strong global recession through 
its hallmarks of technological innovation, customer support and repeat 
transactions. 
 
2009 was a predictably difficult year for trading but the Company managed to 
broadly reduce its costs in line with revenues, in a timely fashion, so as to 
maintain profitability and cash flow. 
 
A number of product improvements have still to come on stream in 2010 and these 
should provide further draught-proofing against the cold wind of recessionary 
times. 
 
 
 
 
 
Don Babbs 
Chief Executive 
10 May 2010 
 
Consolidated statement of financial performance 
 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
|                  |    |                       Year ended 31 December                        | 
+------------------+----+---------------------------------------------------------------------+ 
|                  |    |Ordinary  |Exceptional  |  Total  |Ordinary  |Exceptional  |  Total  | 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
|                  |    |  2009    |    2009     |  2009   |  2008    |    2008     |  2008   | 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
|                  |    | GBP'000  |  GBP'000    |GBP'000  | GBP'000  |  GBP'000    |GBP'000  | 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
|                  |    |          |             |         |          |             |         | 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
| Revenue          |    |   12,807 |           - |  12,807 |   13,913 |           - |  13,913 | 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
| Cost of sales    |    |    (659) |           - |   (659) |    (833) |           - |   (833) | 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
| Gross profit     |    |   12,148 |           - |  12,148 |   13,080 |           - |  13,080 | 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
|                  |    |          |             |         |          |             |         | 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
| Selling expenses |    |  (5,513) |        (46) | (5,559) |  (6,345) |       (343) | (6,688) | 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
| Administrative   |    |  (2,742) |        (26) | (2,768) |  (2,501) |        (93) | (2,594) | 
| expenses         |    |          |             |         |          |             |         | 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
| Product          |    |  (1,841) |           - | (1,841) |  (2,047) |         (9) | (2,056) | 
| development      |    |          |             |         |          |             |         | 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
| Net other        |    |        - |           - |       - |       60 |           - |      60 | 
| operating income |    |          |             |         |          |             |         | 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
| Earnings before  |    |          |             |         |          |             |         | 
| interest, tax,   |    |          |             |         |          |             |         | 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
| depreciation and |    |    2,052 |        (72) |   1,980 |    2,247 |       (445) |   1,802 | 
| amortisation     |    |          |             |         |          |             |         | 
| (EBITDA)         |    |          |             |         |          |             |         | 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
| Depreciation     |    |    (208) |       (129) |   (337) |    (205) |           - |   (205) | 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
| Amortisation     |    |    (815) |           - |   (815) |    (509) |           - |   (509) | 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
| Operating        |    |    1,029 |       (201) |     828 |    1,533 |       (445) |   1,088 | 
| profit/(loss)    |    |          |             |         |          |             |         | 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
| Finance income   |    |        7 |           - |       7 |       34 |           - |      34 | 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
| Finance expense  |    |    (223) |           - |   (223) |    (198) |           - |   (198) | 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
| Profit before    |    |      813 |       (201) |     612 |    1,369 |       (445) |     924 | 
| taxation         |    |          |             |         |          |             |         | 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
| Taxation         |    |      132 |           - |     132 |     (75) |           - |    (75) | 
| credit/(charge)  |    |          |             |         |          |             |         | 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
| Profit after     |    |      945 |       (201) |     744 |    1,294 |       (445) |     849 | 
| taxation         |    |          |             |         |          |             |         | 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
|                  |    |          |             |         |          |             |         | 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
| Earnings per     |    |          |             |    2.00 |          |             |    2.28 | 
| share - pence    |    |          |             |         |          |             |         | 
| (basic )         |    |          |             |         |          |             |         | 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
| Earnings per     |    |          |             |    1.94 |          |             |    2.27 | 
| share - pence    |    |          |             |         |          |             |         | 
| (fully diluted ) |    |          |             |         |          |             |         | 
+------------------+----+----------+-------------+---------+----------+-------------+---------+ 
 
 
Consolidated statement of comprehensive income 
+--------------------------------+------------------+----------+---------+---------+ 
|                                |                  |          |     Year ended 31 | 
|                                |                  |          |         December  | 
|                                |                  |          |                   | 
+--------------------------------+------------------+----------+-------------------+ 
|                                |                  |          |    2009 |    2008 | 
+--------------------------------+------------------+----------+---------+---------+ 
|                                |                  |          | GBP'000 | GBP'000 | 
+--------------------------------+------------------+----------+---------+---------+ 
|                                |                  |          |         |         | 
+--------------------------------+------------------+----------+---------+---------+ 
| Profit for the year            |                  |          |     744 |     849 | 
+--------------------------------+------------------+----------+---------+---------+ 
| Comprehensive income for the   |                  |          |         |         | 
| year:                          |                  |          |         |         | 
+--------------------------------+------------------+----------+---------+---------+ 
| Currency translations          |                  |          |    (52) |     205 | 
+--------------------------------+------------------+----------+---------+---------+ 
| Exchange losses on net         |                  |          |   (121) |       - | 
| investment in foreign          |                  |          |         |         | 
| operations                     |                  |          |         |         | 
+--------------------------------+------------------+----------+---------+---------+ 
| Total comprehensive income for |                  |          |     571 |   1,054 | 
| the year attributable to       |                  |          |         |         | 
| shareholders                   |                  |          |         |         | 
+--------------------------------+------------------+----------+---------+---------+ 
|                                |                  |          |         |         | 
+--------------------------------+------------------+----------+---------+---------+ 
 
 
+-------------------------------+----+---------+---------+ 
| Consolidated statement of     |    |As at 31 December  | 
| financial position            |    |                   | 
+-------------------------------+----+-------------------+ 
|                               |    |  2009   |  2008   | 
+-------------------------------+----+---------+---------+ 
|                               |    |GBP'000  |GBP'000  | 
+-------------------------------+----+---------+---------+ 
| ASSETS                        |    |         |         | 
+-------------------------------+----+---------+---------+ 
| Non-current assets            |    |         |         | 
+-------------------------------+----+---------+---------+ 
| Property, plant and equipment |    |     347 |     854 | 
+-------------------------------+----+---------+---------+ 
| Goodwill                      |    |   3,024 |   3,066 | 
+-------------------------------+----+---------+---------+ 
| Other intangible assets       |    |   4,269 |   3,837 | 
+-------------------------------+----+---------+---------+ 
| Trade and other receivables   |    |     319 |       - | 
+-------------------------------+----+---------+---------+ 
| Held for sale                 |    |     224 |       - | 
+-------------------------------+----+---------+---------+ 
| Investments                   |    |       - |       1 | 
+-------------------------------+----+---------+---------+ 
| Deferred tax                  |    |     300 |     239 | 
+-------------------------------+----+---------+---------+ 
|                               |    |   8,483 |   7,997 | 
+-------------------------------+----+---------+---------+ 
| Current assets                |    |         |         | 
+-------------------------------+----+---------+---------+ 
| Inventories                   |    |      28 |      14 | 
+-------------------------------+----+---------+---------+ 
| Trade and other receivables   |    |   6,418 |   7,904 | 
+-------------------------------+----+---------+---------+ 
| Current tax                   |    |      86 |     105 | 
+-------------------------------+----+---------+---------+ 
| Other financial assets        |    |       3 |       - | 
+-------------------------------+----+---------+---------+ 
| Cash and cash equivalents     |    |   2,323 |   1,632 | 
+-------------------------------+----+---------+---------+ 
|                               |    |   8,858 |   9,655 | 
+-------------------------------+----+---------+---------+ 
| Total assets                  |    |  17,341 |  17,652 | 
+-------------------------------+----+---------+---------+ 
|                               |    |         |         | 
+-------------------------------+----+---------+---------+ 
| LIABILITIES                   |    |         |         | 
+-------------------------------+----+---------+---------+ 
| Non-current liabilities       |    |         |         | 
+-------------------------------+----+---------+---------+ 
| Bank loans and borrowings     |    |   2,572 |   1,119 | 
+-------------------------------+----+---------+---------+ 
| Other creditors               |    |      14 |      13 | 
+-------------------------------+----+---------+---------+ 
| Deferred tax                  |    |     733 |     637 | 
+-------------------------------+----+---------+---------+ 
| Provisions for liabilities    |    |     613 |     638 | 
+-------------------------------+----+---------+---------+ 
|                               |    |   3,932 |   2,407 | 
+-------------------------------+----+---------+---------+ 
| Current liabilities           |    |         |         | 
+-------------------------------+----+---------+---------+ 
| Trade and other payables      |    |     763 |     846 | 
+-------------------------------+----+---------+---------+ 
| Current taxation              |    |      88 |     368 | 
+-------------------------------+----+---------+---------+ 
| Bank loans and borrowings     |    |   1,929 |   3,374 | 
+-------------------------------+----+---------+---------+ 
| Deferred revenue              |    |   1,665 |   1,701 | 
+-------------------------------+----+---------+---------+ 
| Other financial liabilities   |    |       - |     122 | 
+-------------------------------+----+---------+---------+ 
| Other creditors               |    |   1,751 |   2,192 | 
+-------------------------------+----+---------+---------+ 
|                               |    |   6,196 |   8,603 | 
+-------------------------------+----+---------+---------+ 
| Total liabilities             |    |  10,128 |  11,010 | 
+-------------------------------+----+---------+---------+ 
|                               |    |         |         | 
+-------------------------------+----+---------+---------+ 
| EQUITY                        |    |         |         | 
+-------------------------------+----+---------+---------+ 
| Issued share capital          |    |     186 |     186 | 
+-------------------------------+----+---------+---------+ 
| Share premium                 |    |   1,860 |   1,860 | 
+-------------------------------+----+---------+---------+ 
| Other reserves                |    |    (18) |      26 | 
+-------------------------------+----+---------+---------+ 
| Retained earnings             |    |   5,185 |   4,570 | 
+-------------------------------+----+---------+---------+ 
| Total equity                  |    |   7,213 |   6,642 | 
+-------------------------------+----+---------+---------+ 
| Total equity and liabilities  |    |  17,341 |  17,652 | 
+-------------------------------+----+---------+---------+ 
 
 
 
 
 
Consolidated statement of changes in equity 
+---------------+---------+---------+---------+----------+----------+---------+ 
|               |         |         |  Trans  |          |          |         | 
+---------------+---------+---------+---------+----------+----------+---------+ 
|               |  Share  |  Share  | lation  |  Other   |Retained  | Total   | 
+---------------+---------+---------+---------+----------+----------+---------+ 
|               |Capital  |Premium  |Reserve  |Reserves  |Earnings  | Equity  | 
+---------------+---------+---------+---------+----------+----------+---------+ 
|               |GBP'000  |GBP'000  |GBP'000  | GBP'000  | GBP'000  |GBP'000  | 
+---------------+---------+---------+---------+----------+----------+---------+ 
|               |         |         |         |          |          |         | 
+---------------+---------+---------+---------+----------+----------+---------+ 
| As at         |     186 |   5,860 |   (191) |       12 |    (279) |   5,588 | 
| 1             |         |         |         |          |          |         | 
| January       |         |         |         |          |          |         | 
| 2008          |         |         |         |          |          |         | 
+---------------+---------+---------+---------+----------+----------+---------+ 
| Transfer      |       - | (4,000) |       - |        - |    4,000 |       - | 
| of share      |         |         |         |          |          |         | 
| premium       |         |         |         |          |          |         | 
| on            |         |         |         |          |          |         | 
| capital       |         |         |         |          |          |         | 
| restructuring |         |         |         |          |          |         | 
+---------------+---------+---------+---------+----------+----------+---------+ 
| Total         |       - |       - |     203 |        2 |      849 |   1,054 | 
| comprehensive |         |         |         |          |          |         | 
| income        |         |         |         |          |          |         | 
+---------------+---------+---------+---------+----------+----------+---------+ 
| As at         |     186 |   1,860 |      12 |       14 |    4,570 |   6,642 | 
| 31            |         |         |         |          |          |         | 
| December      |         |         |         |          |          |         | 
| 2008          |         |         |         |          |          |         | 
+---------------+---------+---------+---------+----------+----------+---------+ 
|               |         |         |         |          |          |         | 
+---------------+---------+---------+---------+----------+----------+---------+ 
| Transfer      |       - |       - |       - |        8 |      (8) |       - | 
+---------------+---------+---------+---------+----------+----------+---------+ 
| Total         |       - |       - |    (51) |      (1) |      623 |     571 | 
| comprehensive |         |         |         |          |          |         | 
| income        |         |         |         |          |          |         | 
+---------------+---------+---------+---------+----------+----------+---------+ 
| As at         |     186 |   1,860 |    (39) |       21 |    5,185 |   7,213 | 
| 31            |         |         |         |          |          |         | 
| December      |         |         |         |          |          |         | 
| 2009          |         |         |         |          |          |         | 
+---------------+---------+---------+---------+----------+----------+---------+ 
 
 
+--------------------------------+--------+---------+---------+ 
| Consolidated cash flow         |        |         |         | 
| statement                      |        |         |         | 
+--------------------------------+--------+---------+---------+ 
|                                |        |  Year ended 31    | 
|                                |        |     December      | 
+--------------------------------+--------+-------------------+ 
|                                |        |  2009   |  2008   | 
+--------------------------------+--------+---------+---------+ 
|                                |        |GBP'000  |GBP'000  | 
+--------------------------------+--------+---------+---------+ 
| Cash flows from operating      |        |         |         | 
| activities                     |        |         |         | 
+--------------------------------+--------+---------+---------+ 
| Cash generated from operations |        |   1,669 |   1,916 | 
+--------------------------------+--------+---------+---------+ 
| Interest paid                  |        |   (159) |   (213) | 
+--------------------------------+--------+---------+---------+ 
| Taxes paid                     |        |    (60) |    (39) | 
+--------------------------------+--------+---------+---------+ 
| Net cash from operating        |        |   1,450 |   1,664 | 
| activities                     |        |         |         | 
+--------------------------------+--------+---------+---------+ 
|                                |        |         |         | 
+--------------------------------+--------+---------+---------+ 
| Cash flows from investing      |        |         |         | 
| activities                     |        |         |         | 
+--------------------------------+--------+---------+---------+ 
| Payment of deferred            |        |     (7) |   (587) | 
| consideration                  |        |         |         | 
+--------------------------------+--------+---------+---------+ 
| Purchase of property, plant    |        |    (54) |   (173) | 
| and equipment                  |        |         |         | 
+--------------------------------+--------+---------+---------+ 
| Proceeds from sale of          |        |      13 |     247 | 
| property, plant and equipment  |        |         |         | 
+--------------------------------+--------+---------+---------+ 
| Purchases of intangible assets |        |     (7) |   (197) | 
+--------------------------------+--------+---------+---------+ 
| Proceeds from sale of          |        |       4 |       - | 
| investment                     |        |         |         | 
+--------------------------------+--------+---------+---------+ 
| Capitalised product            |        | (1,027) | (1,008) | 
| development                    |        |         |         | 
+--------------------------------+--------+---------+---------+ 
| Sale of financial asset        |        |       - |     118 | 
+--------------------------------+--------+---------+---------+ 
| Interest received              |        |       7 |      34 | 
+--------------------------------+--------+---------+---------+ 
| Net cash used in investing     |        | (1,071) | (1,566) | 
| activities                     |        |         |         | 
+--------------------------------+--------+---------+---------+ 
|                                |        |         |         | 
+--------------------------------+--------+---------+---------+ 
| Cash flows from financing      |        |         |         | 
| activities                     |        |         |         | 
+--------------------------------+--------+---------+---------+ 
| Payments of finance lease      |        |    (97) |    (81) | 
| liabilities                    |        |         |         | 
+--------------------------------+--------+---------+---------+ 
| Loans drawn down               |        |   2,275 |     524 | 
+--------------------------------+--------+---------+---------+ 
| Loans repaid                   |        | (1,721) |   (613) | 
+--------------------------------+--------+---------+---------+ 
| Net cash from/(used in)        |        |     457 |   (170) | 
| financing activities           |        |         |         | 
+--------------------------------+--------+---------+---------+ 
|                                |        |         |         | 
+--------------------------------+--------+---------+---------+ 
| Net increase/(decrease) in     |        |     836 |    (72) | 
| cash and cash equivalents      |        |         |         | 
+--------------------------------+--------+---------+---------+ 
| Cash and cash equivalents at   |        |      92 |    (16) | 
| beginning of the year          |        |         |         | 
+--------------------------------+--------+---------+---------+ 
| Exchange (losses)/gains on cash and     |    (55) |     180 | 
| cash equivalents                        |         |         | 
+-----------------------------------------+---------+---------+ 
| Cash and cash equivalents at   |        |     873 |      92 | 
| end of the year                |        |         |         | 
+--------------------------------+--------+---------+---------+ 
|                                |        |         |         | 
+--------------------------------+--------+---------+---------+ 
 
Notes to the Financial Information for the year ended 31 December 2009 
 
 
1.   Dividend 
 
The directors do not recommend the payment of a dividend. 
 
2. Exceptional costs 
 
The directors consider the costs associated with the restructuring of the Group 
to be exceptional.  Such costs, together with associated redundancy costs and 
provisions and impairment in respect of property no longer required by the 
Group, have been disclosed as exceptional within a separate column in the 
consolidated statement of financial performance. 
 
3.Financial information 
 
The financial information does not constitute the company's statutory accounts 
for the year ended 31 December 2009 or 2008 but is derived from the audited 
financial statements for the year ended 31 December 2009.  Statutory accounts 
for the year ended 31 December 2008 have been delivered to the Registrar of 
Companies.  Statutory accounts for the year ended 31 December 2009 will be sent 
to shareholders and delivered to the Registrar of Companies in due course and 
can be obtained, when available, free of charge, from the Company's registered 
office at Hadley House, Bayshill Road, Cheltenham, Gloucestershire, GL50 3AW or 
on the Company's website: www.vero-software.com.  The auditors have reported on 
those accounts.  Their reports were unqualified and did not contain a statement 
under section 237 (2) or (3) of the Companies Act 1985 in respect of the 
accounts for the year ended 31 December 2008 nor a statement under section 498 
(2) or (3) of the Companies Act 2006 in respect of the accounts for the year 
ended 31 December 2009. 
 
Except as described below, the financial statements for the year ended 31 
December 2009 have been prepared using the accounting policies that were applied 
in the audited financial statements for the year ended 31 December 2008. 
 
IAS 1 Presentation of Financial Statements :  The revised IAS 1 has resulted in 
a change to disclosures in the financial statements, as well as changing the 
presentation of performance. The Group has chosen to present a separate 
statement of financial performance and comprehensive income and now reports a 
statement of financial position rather than a balance sheet. 
 
IAS 20 Accounting for Government Grants and Disclosure of Government Assistance 
:  The revised IAS 20 requires the benefit of a government loan at a 
below-market rate of interest to be treated as a government grant.  The Group 
has not received any new loans since 1 January 2009 at below-market rates of 
interest, which remain outstanding at the year end.  The revisions to the 
Standard have therefore not impact the statements for the year ended 31 December 
2009.  The revisions to the Standard are however expected to impact future 
periods. 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 FR DMGMKFGRGGZM 
 

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