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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Vale Int | LSE:VIG | London | Ordinary Share | VGG9330F1018 | ORD NPV (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 5.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number:2715U
VI Group PLC
03 April 2007
RNS Release
3 April 2007
VI Group plc
("VI Group" or "the Company")
Preliminary results for the year ended to 31 December 2006
VI Group plc, international suppliers of CAD/CAM software, announces preliminary
results for the year to 31 December 2006, another year of revenue growth and
increased earnings.
Financial and business highlights:
* EBITDA (earnings before interest, tax, depreciation and amortisation)
increased by 32% to #1.3m (2005: #1.0m)
* Revenue increased 8% to #11 million (2005: #10.2m)
* Profit before tax rose 57% to #0.9 million (2005: #0.6m)
* Basic and fully diluted earnings per share of 1.51p (2005: 0.99p), an
increase of 52%
* Successful completion of two acquisitions, including VI's largest to
date
* Expanded sales and support operations in Japan, China, North America,
France and the UK
* Increased investment in product development, giving greater capacity to
develop new products and improving the core software
Stephen Palframan, Chairman, commented:
"In another busy year the Company has further increased revenues and earnings
per share while following its strategy of expanding the product line. These
products will gradually be made available to the distribution network during
2007 and should provide further impetus for growth. Although 2006 was active in
terms of acquisitions it is unlikely to mark the end of our interest in
expanding yet further the distribution channels as opportunities become
available. Therefore, the Group can look forward to an exciting year of
expansion in a range of new sectors and to the consolidation of current gains."
Enquiries, please contact:
Don Babbs Mike Coe
Chief Executive Blue Oar
Securities plc
VI Group plc 0117 933 0020
01453 732 900
Julie Randall Neil Boom/Laura
Black
Finance Director Gresham PR Ltd.
VI Group plc 020 7404 9000
01453 732 900
CHAIRMAN'S STATEMENT
I am pleased to present VI Group's financial results for the year ended 31st
December 2006. VI has delivered further improvements in revenues and
profitability and the Group's growth strategy has continued, making two
significant acquisitions during the year.
Group turnover increased by eight percent to #11 million (2005: #10.2m), a
result of organic growth and the effect of acquisitions made during the year. We
are pleased that the growth was achieved against a background of lower exchange
rates for both the US Dollar and the Japanese Yen. A significant proportion of
sales is denominated in these currencies, therefore the changes to these
exchange rates impacted on our reported revenues. In constant currency terms
sales growth would have been 11%.
EBITDA (earnings before interest, tax, depreciation and amortisation) increased
by 32% to #1.3 million (2005: #1.0m) and profit before tax rose 57% to #0.9
million (2005: #0.6m). Earnings per share increased by 52% to 1.51p (2005:
0.99p).
The two acquisitions announced during 2006 have provided us with new product
ranges that complement our existing products and additional sales outlets,
notably in Japan and Italy. We are delighted that both acquisitions have already
contributed positively to this year's sales and profit figures.
The acquisition of an Italian company Plastics and Computer International Srl
was announced in June. The company develops and licenses software for the
analysis and simulation of the flow of plastic materials within injection
moulds. This sophisticated software allows its users to model accurately how
different materials will perform inside the moulds and dies. It represents a new
approach in the design process by allowing design or material problems to be
fully investigated before manufacture, providing significant time and cost
savings for the customer. As plastic injection moulding is already a significant
sales sector for our current product lines this will facilitate the provision of
both products and consulting services to the existing customer base.
Camtek Ltd, a UK based software developer, was acquired more recently in
November 2006, and is VI's largest acquisition to date. The purchase further
extends our sales to other companies embedding VI software within their own
products and gives us entry into the production sector. Camtek is located
conveniently close to the Group's current head office and provides further
opportunity to integrate a substantial number of experienced developers within
the VI teams.
Results from Asia were again strong with particularly good growth in Japan
resulting from a recovery in the manufacturing sector and from Japanese
companies being among the first of our customer base to benefit from the
technological advantages of new VI products. Elsewhere sales in North America
grew well. The SMIRTware acquisition from 2005 produced a number of new products
that were readily adopted by Ford and Daimler Chrysler as part of their
respective efficiency drives.
In Europe sales in the UK, France and Germany grew strongly for both the new
customer and existing user profiles. Italy remains our largest European market
but suffered from the prevailing economic conditions in 2006. We believe that
Eastern Europe remains a potential growth market but lacks much of the
infrastructure necessary for its dynamic development.
Staff numbers have also grown during the year and our largely stable workforce
has been behind much of the success in producing, improving, selling and
supporting the broader range of products. Their enthusiasm and loyalty remain
cornerstones of our ability to compete around the world with far larger
companies.
These results are the first to be produced using International Financial
Reporting Standards, a year ahead of the mandatory requirement for AIM listed
companies.
Outlook
In another busy year the Company has further increased revenues and earnings per
share while following its strategy of expanding the product line. These new
products will gradually be made available to the distribution network during
2007 and should provide further impetus for growth. Although 2006 was active in
terms of acquisitions it is unlikely to mark the end of our interest in
expanding yet further the distribution channels as opportunities become
available. Therefore, the Group can look forward to an exciting year of
expansion in a range of new sectors and to the consolidation of current gains.
Stephen Palframan
Chairman
3 April 2007
BUSINESS REVIEW
The directors set out in this section their analysis of business. We do so
voluntarily and do not seek to comply in full with the Accounting Standard
Board's Statement "Operating and Financial Review" issued in January 2003.
International Financial Reporting Standards (IFRS)
These are the Group's first annual consolidated financial statements which have
been prepared using IFRS as adopted by the European Union and all comparatives
have been restated accordingly.
Review
In recent years the Group has focused on improving bottom line profitability and
cash generation. This year we have been able to capitalise on this and have made
two further acquisitions. We have now made a total of eight acquisitions since
floating on AIM and are pleased to report another year of improvement with a 57%
rise in pre tax profits to #942,000. The Group reports its 18th consecutive year
of increasing revenue with an eight percent increase to #11.0 million from
#10.2m in 2005.
The Group introduced new software products during the year intended for the
footwear, large stamping dies, plastic injection, laser cutting, wire erosion,
reverse engineering, automotive and electronic sectors during 2006. All of the
products are highly specific for each application and accordingly provide
significant design and production advantages for each individual sector.
Sales and support operations in Japan, China, North America, France and the UK
were all expanded in 2006 following the Company's growth in each of these
markets. Increased development resources also reflected the Group strategy to
expand the product range and further enhance the principal software products.
Software maintenance revenues have continued to climb reflecting the quality of
customer support as well as the eagerness of customers to maintain their
productivity at the highest levels. New sales to existing customers accounted
for 63% of revenues as they expanded the VI solutions within their own
organisations.
Continuing investment in our in house development and the higher profitability
in some of the newer products led to further gains in our gross margin from #9.2
million or 90% of sales in 2005 to #10.2 million or 92% of sales in 2006.
Acquisitions
The acquisition of Plastics & Computer was completed at the start of September
2006 following an initial commercial collaboration over the previous year. The
plastic flow analysis software provided by the company over its long history has
now been integrated within the VISI-Series range of products and is being
commercialised in all countries under the brand name 'VISI-Flow'.
In November, the Company bought Camtek Ltd., based in Malvern, for #2.8 million.
The initial results have been encouraging with a contribution of #0.3 million to
revenues and nearly #0.1 million to the Group operating profit for the two month
period since it was acquired. Cutting edge products providing the leading
solutions for controlling wire erosion and multi axis laser cutting machines are
being rolled out throughout the group. The integration of Camtek products and
staff has proceeded smoothly with benefits in both product breadth and
distribution being utilised as early as possible.
New Operations
A number of new dealers and OEM customers were started in 2006 and in particular
in North America where the Group is growing in influence. VI Group will
concentrate on integrating and selling the newly acquired products through its
own distribution network in 2007 and maximising the genuine cross selling
opportunities that exist.
Operating Expenses
We remain focused on cost control. Both selling and general and administration
expenses grew at a lower rate than turnover (seven percent and five percent
respectively). This was despite the additional costs associated with the two
acquisitions this year and a full year of costs from SMIRTware which was
acquired in August 2005.
Product Development and Other Operating Income
We have made additional investment in our product development activities and the
acquisitions made during the year have provided the Group with a greater
capacity to develop new products while improving the core software offering. The
rate of delivery of new productivity gains to new and existing customers is
increasingly being recognised as the key target for the Company's software
development effort.
Product development expenditure of #603,000 has been capitalised this year
(2005: #333,000) as required by International Financial Reporting Standards.
This reflects investment in development which will be included in future
releases of our products. Further investment planned for 2007 includes specific
developments for our growing number of larger customers in the electronics and
automotive industries.
Taxation and Earnings per Share
The Company made earnings before interest, tax, depreciation and amortisation
(EBITDA) of #1.3 million, an increase of 32% on the previous year (2005: #1.0m).
It also recorded a pre-tax profit of #942,000 (2005: #601,000). The Company
incurred a tax charge of #380,000 and a post tax profit of #562,000 (2005:
#370,000). Basic and fully diluted earnings per share were 1.51p (2005: 0.99p)
an increase of 52%.
Cash Flow and Net Funds
Cash inflow from operations was #0.8 million compared to an inflow of #0.7
million in 2005. Cash balances at the year end were #1.0 million (2005: #1.1m),
with #0.6 million of short-term borrowings (2005: #0.4m), giving a net funds
figure of #0.4 million (2005: #0.7m). Net debt increased to #2.3 million from
#0.1 million largely because of the financing of the Camtek acquisition.
Don Babbs
Chief Executive
3 April 2007
VI Group plc
Consolidated Income Statement
For the year ended 31 December 2006
Year ended 31 December
2006 2005
Restated
#'000 #'000
Revenue 11,027 10,196
Cost of sales (849) (980)
--------- ----------
Gross profit 10,178 9,216
Selling expenses (5,426) (5,115)
Administrative expenses (2,012) (1,910)
Product development (1,471) (1,268)
Net other operating income 75 95
--------- ----------
Earnings before interest, tax,
depreciation and amortisation (EBITDA) 1,344 1,018
Depreciation (186) (196)
Amortisation (182) (196)
--------- ----------
Operating profit 976 626
Interest receivable and similar income 47 25
Interest payable and similar charges (81) (50)
--------- ----------
Profit before taxation 942 601
Taxation (380) (231)
--------- ----------
Profit after taxation 562 370
--------- ----------
Earnings per share - pence (basic and diluted) 1.51 0.99
VI Group plc
Consolidated Balance Sheet
As at 31 December 2006
As at 31 December
2006 2005
Restated
#'000 #'000
ASSETS
Non-current assets
Property, plant and equipment 1,074 410
Goodwill 2,808 1,281
Other intangible assets 2,111 915
Investments 1 -
--------- ---------
5,994 2,606
--------- ---------
Current assets
Inventories 21 21
Trade and other receivables 6,178 5,585
Current tax 71 26
Deferred tax 142 12
Financial assets 204 -
Cash and cash equivalents 968 1,077
--------- ---------
7,584 6,721
--------- ---------
Total assets 13,578 9,327
========= =========
LIABILITIES
Non-current liabilities
Bank loans and borrowings 2,043 572
Other creditors 537 116
Deferred tax 347 37
Provisions for other liabilities and charges 493 415
--------- ---------
3,420 1,140
--------- ---------
Current liabilities
Trade and other payables 536 406
Current taxation 80 109
Bank loans and borrowings 1,219 641
Deferred revenue 1,416 1,249
Other creditors 1,975 1,316
--------- ---------
5,226 3,721
--------- ---------
Total liabilities 8,646 4,861
========= =========
EQUITY
Issued share capital 186 186
Share premium 5,860 5,860
Other reserves (61) 33
Retained earnings (1,053) (1,613)
--------- ---------
Total equity 4,932 4,466
--------- ---------
Total equity and liabilities 13,578 9,327
========= =========
VI Group plc
Consolidated Cash Flow Statement
For the year ended 31 December 2006
Year ended 31 December
2006 2005
Restated
#'000 #'000
Cash flows from operating activities
Cash generated from operations 772 711
Interest paid (72) (48)
Taxes paid (400) (258)
-------- ---------
Net cash from operating activities 300 405
-------- ---------
Cash flows from investing activities
Acquisition of subsidiaries net of cash acquired (1,877) (455)
Payment of deferred consideration (99) (37)
Purchase of plant, property and equipment (147) (120)
Proceeds from sale of equipment 58 59
Purchases of intangible assets (15) (26)
Purchase of financial asset (207) -
Loan to distributor (163) -
Interest received 53 25
-------- ---------
Net cash used in investing activities (2,397) (554)
-------- ---------
Cash flows from financing activities
Payments of finance lease liabilities (93) (99)
Loans 2,076 465
Loans repaid (136) -
-------- ---------
Net cash used in financing activities 1,847 366
-------- ---------
Net (decrease)/ increase in cash and cash
equivalents (250) 217
Cash and cash equivalents at beginning of year 652 407
Exchange gains / (losses) on cash and bank
overdrafts (59) 28
-------- ---------
Cash and cash equivalents at end of the year 343 652
-------- ---------
Reconciliation of net cash flow to movement in net funds/(debt)
Year ended 31 December
2006 2005
#'000 #'000
(Decrease)/Increase in cash in the year (250) 217
Cash(outflow) from change in debt and finance
leasing (1,967) (473)
-------- ---------
Change in net funds in the period resulting from
cash flow (2,217) (256)
Exchange movements 59 32
Net funds/(debt) at beginning of the year (136) 88
-------- ---------
Net (debt)/funds at end of the year (2,294) (136)
-------- ---------
VI Group plc
Notes to the Preliminary Results
For the year ended 31 December 2006
1. Reconciliation of restated IFRS consolidated financial information to UK GAAP
Profit Year to
31 December 2005
#'000
(Loss) for the period under UK GAAP as previously
reported (154)
Reversal of amortisation of goodwill 310
Goodwill impairment (70)
Share based payments charges (33)
Holiday pay accruals (11)
Capitalisation of development 333
Amortisation of intangible assets (8)
Revenue Recognition 3
---------
Profit for the period under IFRS 370
---------
Total Equity
As at 31
December 2005
#'000
Total equity under UK GAAP as previously reported 4,159
Reversal of amortisation of goodwill 310
Goodwill impairment (70)
Holiday pay accruals (38)
Capitalisation of development 333
Amortisation of intangible assets (8)
Revenue Recognition (220)
---------
Total equity under IFRS 4,466
---------
2. Dividend
The directors do not recommend the payment of a dividend.
3. Financial information
The figures for the year ended 31 December 2006 have been extracted from the
full unaudited accounts for the year. The figures have been prepared and
compiled in accordance with International Financial Reporting Standards (IFRS).
The comparative figures for the year ended 31 December 2005 (as restated under
IFRS) have been taken from but do not constitute, the group's statutory accounts
for the year. Those statutory accounts have been reported on by the Group's
auditors and have been delivered to the Registrar of Companies. The report of
the auditors was unqualified and did not contain a statement under section 237
(2) or (3) of the Companies Act 1985.
The annual report will be sent to shareholders in due course. Copies of this
announcement and the full statutory accounts can be obtained, when available,
free of charge, from the Company's office at The Mill, Brimscombe Port,
Brimscombe, Stroud, Gloucestershire GL5 2QG or on the Company's website:
www.vero-software.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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