Vero are pleased to present Vero Software’s financial results for the year ended 31st December 2007. The Company has produced strong growth in both revenues and profits while significantly improving its software development and subsidiary distribution capabilities.
Group turnover increased by 15% to £12.7 million (2006: £11.0m), a result of organic growth and the effect of acquisitions made in both the current and previous year. The growth was achieved despite significant weakness in the US Dollar and the Japanese Yen exchange rates against Sterling which constrained our reported earnings. In constant currency terms sales growth would have been over 18%.
EBITDA (earnings before interest, tax, depreciation and amortisation) increased by 40% to £1.9 million (2006: £1.3m), operating profit rose 30% to £1.3m (2006: £1.0m) and profit before tax rose 15% to £1.1 million (2006: £0.9m). Earnings per share increased by 19% to 1.79p (2006: 1.51p).
The acquisition of the distributor Camtek North America in June further cemented the relationship with the Camtek organisation and gave additional sales and technical support weight to our growing North American operations. The acquisition immediately made a positive contribution to both the sales and profitability of Vero Software.
In addition to the positive results from North America, Europe was instrumental in providing growth with Germany, France and Italy all providing good revenue increases over 2006. European mould and die sector manufacturers continue to drive efficiency in order to compete with their Asian counterparts. This has led to a realisation of the need for investment in specific new technologies and in which Vero Software is a recognised leader.
2007 was also a significant year for the growth in managerial and technically expert staff fuelling and supporting our expansion in China, Japan, France and North America. In addition the new marketing department started their ambitious role by re-branding the Company identity to a more inclusive and modern style that has become associated with Vero Software. These changes, implemented across all products, subsidiaries and dealerships have been widely applauded by end users, dealers and investors alike.
Financial and operating highlights:
- Revenue increased by 15% to £12.7m (2006: £11.0m), representing record growth, [on a constant currency basis, turnover increased by 18% ]
- EBITDA (earnings before interest, tax, depreciation and amortisation) increased by 40% to £1.9m (2006: £1.3m)
- Operating Profit rose 30% to £1.3 million (2006: £1.0m)
- Pre-tax profit of £1.1 million (2006: £0.9 million)
- Basic earnings per share of 1.79p (2006: 1.51p), an increase of 19%
- Successful integration of previous acquisitions resulting in the worldwide introduction of two new product sectors covering plastic flow analysis and complex laser cutting
- A successful re-branding to the modernised Vero Software image which has brought significant additional recognition and acclaim
Stephen Palframan, Chairman, commented:
“A record rise in revenue, a 40% increase in earnings that exceeded expectations and a 19% improvement in after tax performance make this an outstanding set of results for 2007. While it is true that 2007 provided some of our markets with good economic conditions the results are even more distinguished considering the distinctly unfavourable currency rates. With our highest ever levels of investments in new product development and our continued interest in qualified distribution companies Vero Software is confident of further growth in 2008.”