Despite several successive years of crippling losses and a
net loss of €496,580 in 2015, in its newly published financial
statements for 2015, Veritas claims to have a plan “that will see the
business return to generating positive cash flows”.
Such a turnaround is clearly imperative, since the company
ended last year with less than €300,000 in the bank and less than
€600,000 due from customers, while almost €4.4 million was due to be
paid to creditors over the course of this year.
The commitment to generate positive cash flows echoes an
identical commitment in the financial statements for 2014, where the
company said the introduction of the new Grow in Love catechetical
programme in late 2015 was expected to boost sales.
No details are
offered in the most recent accounts to indicate that 2016’s sales are
significantly better than those of 2015.
In order to stay afloat the company relies on loans from
its principle banker, AIB, with a combined value at the end of last year
of €2.65 million, and the support of Ireland’s bishops.
The Veritas group, which consists of Veritas and its
parent company Veritas Communications, is ultimately owned by the Irish
Catholic Bishops’ Conference.
The conference appoints the president of
Veritas Communications and members of its executive committee, which act
as a board of directors.
Funding
During 2015, the group received funding of almost €1.2
million from the Hierarchy General Purposes Trust, with this loan due to
be repaid in instalments by 2019.
The bishops’ conference was due
€764,286 at the end of 2015.
The parent company, which ended the year with a book value
of just €94,448, according to the group’s financial statement for 2015,
has supported the publishing and retail company through a capital
contribution of €4 million, and has supplied AIB with a letter of
guarantee for €2.91 million.