Vero in takeover talks as results disappoint

Vero in takeover talks as results disappoint
Melanie Reynolds
Vero has said it is talking to a potential buyer for the company as it reported disappointing end of year results. Pre-tax profits were down by 26 per cent to ?10m on a turnover down 4.5 per cent to ?101.2m.
All the company would say is that it is currently in talks with an undisclosed third party regarding a takeover bid.
The results were blamed on the strength of sterling and a decline in sales to Ericsson, a major customer. Sales have declined due to project completion and the delay of future projects.
A review of the company objectives and strategy has been carried out according to Brian Gay, managing director. It was felt that the strategy was sound, but that an increase in focus on objectives was now needed. Organisational changes have occurred primarily in Europe where developing local manufacturing capability is being examined.

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