Veris considers selling off its facilities management division as part of review

SUPPORT services group, Veris — which earlier this week announced the sale of its loss-making storage and removals division — is investigating the possibility of selling its facilities management division, mainly comprising its Vector brand, as part of a wide reaching strategic review.

Veris — which also owns the property management company Irish Estates and a number of smaller support services companies both here and in Britain — yesterday warned shareholders that it will likely report a loss after tax of approximately e7 million for 2008, when it formally reports figures in early May.

The expected loss will be driven mainly by a once-off impairment charge of e11.2m relating to the write-down in value of the group’s moving and storage division.

Without the exceptional charge, after-tax profits for the year would amount to around e4m. The group added that revenue for 2008 is likely to total around e80m.

Despite the potential for a sale of the facilities management arm, the division is expected to continue to perform “satisfactorily”.

According to Veris’ chief executive, Bernard Farrell: “Thereis likely to be little, if any, acquisition activity in the foreseeable future due principally to a continued lack of liquidity in the debt markets.

“Therefore, it is my belief that even if a decision is made not to dispose of the facilities management business, significant cost savings may result from such a review.”

The logistics business — which is being sold for just over e74,300 and includes brands such as Nat Ross, Beverly Smyth, McConnell Removals, Oman Transport and Hire-a-Crate Ltd — made a loss of e460,000 in the first half of last year. Veris had hoped that the removals arm would break even this year.