Vero Software Plc report record breaking numbers

Vero Software Plc, (AIM: VERO) leading suppliers of CAD/CAM software for the mould and die industry, are pleased to report positive interim results for the six months to 30 June 2008.

Despite the recent economic conditions, demand for the Group’s products has remained strong. This demonstrates the benefits of our strength and depth in differing geographic locations and industry sectors and of the potential productivity and efficiency gains available to customers using our software. In particular the Italian and German markets have maintained the levels of growth seen last year while North American revenues also increased significantly, benefiting in part from the acquisitions made in 2007 and also building upon the success of the Group’s SMIRT product suite with additional orders from Ford and Honda.

Group revenue for the first half of the year increased by 13% to £6.6 million (2007: £5.9m). Maintenance revenues during the period have grown to £1.9million (2007:£1.5m), providing the Group with an increased base of recurring revenue representing 28% of revenue in the first half of 2008 compared with 25% in the first half of 2007.

Commenting on the interim results, Don Babbs, Chief Executive of Vero Software, said “Vero Software has performed strongly in the first six months of the year against a background of global economic uncertainty. The increase in maintenance revenues in particular is a reflection of the quality of our technical support and software and provides the Group with valuable recurring revenues. The product upgrades that we have planned for the autumn will give our customers significantly enhanced software products which we are confident will enable them to maximise their productivity at a time when such gains in efficiency are essential”.

Financial highlights:
-Turnover increased by 13% to £6.6 million (2007: £5.9 million),
-Revenues derived from maintenance have grown by 27% to £1.9million (2007: £1.5million)
-27% increase in earnings before exceptional costs, interest, tax, depreciation and amortisation (“EBITDA”) to £0.78 million (2007: £0.61 million)
-Pre-tax profits before exceptional costs rose 23% to £0.34 million (2007: £0.28 million)
-Basic earnings per share 0.13p (2007: 0.08p)