QUOTED SERVICES group Veris expects earnings growth to be around 3 per cent to 4 per cent this year as the smallest of its three divisions will underperform.
The group said yesterday that pretax profits for the first six months of the year were down 7 per cent at €1.98 million from €2.14 million during the same period in 2007.
Veris provides property and facilities management services to its clients, which include the public service and large listed companies, as well as operating a removals and storage business.
Its shareholders include financier Niall McFadden and his listed investment vehicle Boundary Capital.
Sales were up 35 per cent at €42 million in the first half of 2008 from €31 million last year.
Acquisitions, particularly the Orange facilities management business it bought in Britain last year, contributed €7.5 million to turnover, compared with €8.1 million in 2007.
Earnings per share (eps) were up 7 per cent at 9.2 cent in the first half.
Chief executive Bernard Farrell said the group expects eps to grow by between 3 per cent and 4 per cent this year.
In a statement, Veris pointed out that its moving and storage division, which accounts for 15 per cent of sales, was suffering as a result of the downturn in the economy.
"Consequently, we expect low single-digit growth in our adjusted diluted earnings per share for the full year to December 31st, 2008," the statement said.
Revenues in the moving and storage operation were down 23 per cent in the first half at €5.1 million, while it made a loss of €460,000 during the same period, as against a profit of €370,000 in the first six months of 2007.
Mr Farrell said the business has let 20 people go, around a quarter of its workforce, and had put a further 12 on short-time working. It was continuing to cut costs in the business.
Its property management arm delivered operating profits of €1.25 million during the period, an increase of 25 per cent, while sales were up 15 per cent at €5 million.
Its facilities management division saw operating profits increase 54 per cent to €4.1 million.
Revenues in this business were up 58 per cent at €31.7 million.
