|
VMK
VMK
VMK - Verimark Holdings Limited - Unaudited interim results for the period ended
31 August 2007
Verimark Holdings Limited
Registration number 1998/006957/06
Share Code: VMK
ISIN Code: ZAE000068011
UNAUDITED INTERIM RESULTS FOR THE PERIOD ENDED 31 AUGUST 2007
HIGHLIGHTS
* Results in line with trading statement issued on 23 August 2007
* Revenues down 10.5% to R121.9m
* HEPS down 70.3% to 1.24 cents
* New product introductions almost double
* Expenses aligned with turnover
Michael van Straaten, CEO of Verimark, said:
"Over the past six months, we have made some encouraging progress with our
recovery strategy although we see the process extending over a longer period of
time than originally anticipated.
"Sales of new products have almost doubled compared to the previous comparable
period and our expenses are now well controlled and in line with turnover. We
remain confident that the company can make a full recovery and expect to see
improvements begin to materialise in the second half in comparison to the first
half of the year."
8 November 2007
FINANCIAL OVERVIEW
Verimark issued a trading statement on 23 August 2007 for the interim period
ending 31 August 2007. The actual results achieved for the interim period were
in line with the update.
Headline Earnings per Share and Earnings per Share attributable to shareholders
decreased by 70% from 4.17 cents per share to 1.24 cents per share compared to
the previous reporting period.
As per the trading statement, the lower earnings are attributable to the
comparatively lower levels of turnover and gross profit as a result of the sales
of some older product categories having fallen at a faster rate than expected,
some stock shortages due to a cautious approach to stock ordering levels and the
reconfiguration of some space and positioning with certain retailers. Results
were also negatively impacted by a lower mix in product margins and foreign
exchange losses on forward exchange contracts due to the strengthening of the
Rand.
Expenses have been well controlled and are lower, in value and as a percentage
of turnover, in comparison to that of the previous corresponding period.
Although operating costs have reduced considerably compared to the previous
corresponding period, there was a much higher than expected fall in net profit
and this was due to the operational gearing of the business.
DIVIDEND
Given the lower level of profitability and in-line with the recovery strategy,
the Board considers it prudent not to pay a dividend for the interim period.
With the sustained turnaround in prospects, it is expected that dividend
payments will resume in accordance with the current payout policy of 80% of
headline earnings.
PROSPECTS
Sales of newly introduced products are almost double those of the previous
corresponding period. New products are constantly being sought and reviewed and
good progress continues to be made to compensate for the lower contribution from
new products introductions last year impacting on current performance.
An improvement in gross profit margins is also anticipated within the new
product range and overall mix.
There is a continual focus on controlling expenses and ensuring these are
aligned with achieved turnover.
The recovery strategy is taking longer than previously anticipated but is
underway and remains the key focus of management. Substantial improvements are
expected in the second half of the year compared to the first half but not
necessarily to the level of trading in the previous corresponding period last
year.
We remain confident that the group can make a full recovery and re-establish the
long history of profitability.
Michael van Straaten
Chief Executive Officer
CONDENSED CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Audited
period ended period year
31 August ended 31 ended 28
2007 August February
2006 2007
R`000 R`000 R`000
Revenue 121 900 290 258
136 212
Operating profit before 5 175 22 757
finance costs 9 460
Finance income 28 572
688
Finance costs (1 945) (967)
(144)
Profit before taxation 3 258 22 362
10 004
Income tax expense (1 837) (9 088)
(5 244)
Profit for the period 1 421 13 274
4 760
Attributable to 1 421 13 274
shareholders 4 760
Weighted shares in issue 114 272 328 114 272
114 272 328
328
Earnings per share 1.24 11.62
(cents) 4.17
Diluted earnings per 1.24 11.62
share (cents) 4.17
CONDENSED CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited year
period ended period ended 28
31 August ended 31 February 2007
2007 August 2006
R`000 R`000 R`000
ASSETS
Plant and equipment 3 993
4 057 4 126
Intangible assets 14 438
14 511 14 663
Loans receivable 698
459 997
Deferred taxation asset 671
671 -
Non-current assets 19 786 19 800
19 698
Inventories 37 561
44 087 27 411
Trade and other 37 001
receivables 40 979 42 380
Prepayments 1 635
683 613
Short-term portion of 239
loans receivable 239 -
Prepaid taxation 187
37 -
Bank and cash balances 242
922 531
Current assets 76 865
86 947 70 935
TOTAL ASSETS 96 665
106 645 90 721
EQUITY AND LIABILITIES
Share capital 381 381 381
Share premium 37 621 37 621 37 621
Retained earnings 23 303
18 331
Total equity attributable 61 305
to equity holders of the 56 441 56 333
parent
Interest-bearing 81
liabilities 8 33
Non-current liabilities 81
8 33
Trade and other payables 19 421
28 218 17 979
Shareholders for dividend 42
43 30
Short-term portion of 6 071
interest bearing 5 975 439
liabilities
Short-term portion of non- 1
interest bearing - -
liabilities
Bank overdraft 9 744
14 908 -
Taxation payable -
1 052 15 907
Current liabilities 35 279
50 196 34 355
TOTAL EQUITY AND 96 665
LIABILITIES 106 645 90 721
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Unaudited Audited year
period ended ended 28
31 August February 2007
2007
R`000 R`000
Cash flows from operating (33 840)
activities (3 183)
Cash generated by operations 17 210
5 654
Dividend paid (23 955)
(6 285)
Finance income 572
28
Finance costs (1 223)
(1 945)
Taxation paid (26 444)
(635)
Cash outflows from investing (4 140)
activities (1 371)
Acquisition of plant and (3 769)
equipment to maintain (1 174)
operations
Acquisition of intangible (388)
assets to maintain operations (221)
Proceeds from disposal of 17
plant and equipment 24
Cash inflows from financing 5 530
activities 70
Decrease in loans receivable 239
239
Interest-bearing liabilities -
repaid (168)
Interest-bearing liabilities 5 301
raised -
Interest-free borrowings (14 757)
repaid (1)
Interest-free borrowings 14 747
raised -
Net decrease in cash and cash (32 450)
equivalents (4 484)
Cash and cash equivalents at 22 948
beginning of year (9 502)
Cash and cash equivalents at (9 502)
end of period (13 986)
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Retaine Total
capital premium d
earning
s
R`000 R`000 R`000 R`000
Balance at 28 February 381 37 621 34 026 72 0280
2006
Profit for the year - - 13 274 13 274
Total recognised income 381 37621 47 300 85 302
and expenses for the
year
Dividend declared - - (23 (23 997)
997)
Balance at 28 February 381 37 621 23 303 61 305
2007
Profit for the period - - 1 421 1 421
Total recognised income 381 37 621 24 724 67 726
and expenses for the
period
Dividend declared - - (6 (6 285)
285)
Balance at 31 August 381 37 621 18 439 56 441
2007
ACCOUNTING POLICIES
The accounting policies used in the preparation of these results are consistent
with those applied in the previous period and in accordance with International
Financial Reporting Standards ("IFRS") and its interpretation adopted by the
International Accounting Standards Board (IASB), the Listings Requirements of
the JSE Limited and Schedule 4 to the Companies Act 61, as amended.
The interim report has been prepared in accordance with IAS 33 : Interim
Financial Reporting.
1 IFRS 3: Business Combinations, and the appendix for Reverse Acquisitions,
has been used in order to determine the accounting effects of the reverse
listing.
2 Earnings per share was calculated in accordance with IAS 33: Earnings per
Share, and IFRS 3: Business Combinations. Headline earnings per share was
calculated in accordance with Circular 8/2007 issued by SAICA.
August August February
2007 2006 2007
R"000 R"000 R"000
Profit per financial statements 1 421 4 760 13 274
Adjustments:
(Profit)/loss on sale of assets (6) `- 22
Headline earnings 1 415 4 760 13 296
Headline earnings per share (cents) 1.24 4.17 11.64
The total number of weighted shares in issue at 31 August 2007 was 114 272 328.
Prior year comparatives have been restated where necessary.
On behalf of the Board
Michael van Straaten Daniel Reichenberg
Chief Executive Officer Financial Director
Johannesburg, 8 November 2007
Verimark Holdings Limited
Incorporated in the Republic of South Africa
Registration number 1998/006957/06
Share code: VMK
ISIN: ZAE000068011
("Verimark" or "the group")
Directors:
M J van Straaten (CEO), DN Reichenberg (Financial Director), Dr J T Motlatsi*, J
M Pieterse*
*Independent Non-executive
Company Secretary:
Premium Corporate Consulting Services (Pty) Ltd
Registered office:
67 CR Swart Drive, Corner CR Swart Drive and Freda Road, Bromhof Extension 48,
Randburg, 2194
Postal address:
Verimark Holdings Limited, PO Box 78260, Sandton 2146
Email address: Investors@verimark.co.za
Transfer secretaries:
Computershare Investor Services 2004 (Pty) Limited
Auditors:
KPMG Incorporated
Sponsor:
PSG Capital (Pty) Ltd
www.verimark.co.za
Date: 08/11/2007 16:17:20 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
