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VMK
VMK
Verimark - Audited Results for the year ended 28 February 2006
Verimark Holdings Limited
(formerly Creditvision Holdings Limited)
Registration number 1998/006957/06
Share Code: VMK
ISIN Code: ZAE000068011
Audited Results for the year ended 28 February 2006
Innovation, quality and service guaranteed!
HIGHLIGHTS
Revenue increased by 15% from R281,1 million to R322,2 million
Operating profit increased by 25% from R45,6 million to R57,1 million
Final dividend of 18 cps, total dividend of 27,9 cps
CONDENSED CONSOLIDATED INCOME STATEMENT
Audited Audited
Year ended Year ended
February February
2006 2005
R"000 R"000
Revenue 322 175 281 066
Operating profit 57 114 45 609
Net finance income/(costs) 320 (1 285)
Profit before taxation 57 434 44 324
Income tax expense (18 720) (15 200)
Profit for the year 38 714 29 124
Weighted shares in issue 112 848 219 110 000
000
Earnings per share (cents) 34,31 26,48
Diluted earnings per share (cents) 34,31 26,48
CONDENSED CONSOLIDATED BALANCE SHEET
Audited Audited
Year ended Year ended
February February
2006 2005
R"000 R"000
Assets
Plant and equipment 2 347 2 754
Intangible assets 13 870 547
Loans receivable 1 176 -
Deferred taxation asset - 298
Non-current assets 17 393 3 599
Inventory 27 439 28 694
Trade and other receivables 45 522 30 614
Prepayments 496 1 479
Prepaid taxation 63 -
Bank and cash balances 22 948 21 356
Current assets 96 468 82 143
Total assets 113 861 85 742
EQUITY AND LIABILITIES
Share capital 381 -
Share premium 37 621 27 321
Retained earnings 34 140 6 767
Total equity attributable to 72 142 34 088
equity holders of the parent
Interest-bearing liabilities 244 912
Interest-free liabilities 10 19 609
Non-current liabilities 254 20 521
Trade and other payables 24 297 21 518
Provisions - 187
Short-term portion of non-current 607 822
liabilities
Taxation 16 561 8 606
Current liabilities 41 465 31 133
Total equity and liabilities 113 861 85 742
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Audited Audited
Year ended Year ended
February February
2006 2005
R"000 R"000
Cash inflows/(outflows) from 28 314 (3 990)
operating activities
Cash generated by operations 49 909 33 795
Dividend paid (11 341) (36 500)
Finance income 1 231 779
Finance costs (911) (2 064)
Taxation paid (10 574) -
Cash outflows from investing (18 442) (1 313)
activities
Acquisition of plant and equipment (947) (998)
Acquisition of intangible assets (122) (406)
Proceeds from disposal of plant
and
equipment 28 91
Acquisition of subsidiary (17 401) -
Cash (outflows)/inflows from (9 260) 14 951
financing activities
Proceeds on the issue of ordinary 10 680 -
share capital
Interest-bearing liabilities (1 107) (409)
repaid
Interest-free liabilities (18 424) 15 360
(repaid)/raised
Increase in loans receivable (409) -
Net increase in cash and cash 612 9 648
equivalents
Cash and cash equivalents at 21 356 11 708
beginning of year
Cash and cash equivalents as a
subsidiary
on acquisition 980 -
Cash and cash equivalents at end 22 948 21 356
of year
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Retained
capital
and premium earnings Total
R"000 R"000 R"000
Balance at 29 February 2004 27 321 8 143 35 464
Profit for year - 29 124 29 124
Dividend declared - (30 500) (30
500)
Balance at 28 February 2005 27 321 6 767 34 088
Profit for year - 38 714 38 714
Net proceeds on the issue of 10 681 10 681
share capital
Dividend declared - (11 341) (11
341)
Balance at 28 February 2006 38 002 34 140 72 142
COMMENTS
Introduction
Verimark is pleased to announce that our very first year as a listed company has
been a resounding success. The very steep targets in terms of profits and
dividends we set ourselves for the first year were, in true Verimark style,
delivered.
Financial review
We are proud to announce our best trading results since inception 29 years ago.
The critical performance indicators are as follows:
- Revenue increased from R281,1 million to R322,2 15%
million
- Operating profit increased from R45,6 million to 25%
R57,1 million
- Attributable income increased from R29,1 million to 33%
R38,7 million
Headline earnings per share increased by 30% to 34,4 cents from 26,5 cents, and
the net asset value per share more than doubled to 63,1 cents from 31.0 cents.
Cash flow from operations increased by 48% to R49,9 million from R33,8 million.
Dividend
The Board has approved a final dividend of 18 cents per share as projected in
the Pre-listing Statement. This brings the total dividend for the year to 27,9
cents per share, representing 82% of headline earnings per share and a return of
11% on the listing price of R2,50. The last day to trade "cum" dividend will be
Thursday, 15 June 2006 and the share will trade "ex" dividend as from Monday, 19
June 2006. The record date for the dividend will be Friday, 23 June 2006, with
the dividend being paid out on Monday, 26 June 2006. No rematerialisation or
dematerialisation of shares can be done between Monday, 19 June and Monday, 26
June 2006.
Prospects
Our marketing department has already identified a number of exciting new
products that will be introduced in the new year, and we plan to enter at least
one new product category. As the market leader in South Africa we are in the
fortunate position that, in addition to our own product developments, most new
DRTV (Direct Response Television) products are offered to Verimark first,
ensuring an unending supply of new products and ideas. We are also in
discussions with several of our existing retail partners for additional trading
space and have already confirmed additional space with one such partner.
All these new opportunities make us very excited about the year ahead. We are
confident in our ability to outperform the market in general over the long term.
General
As an "ideas company" our most valuable asset is our human capital and our
people need to be continuously nurtured and inspired to create new ideas to
drive our growth plans forward. We define this as Intellectual Property.
In our quest for enhanced performance and growth, we need to continuously
improve the standard. As a group, the directors, management and the rest of the
team have ensured that the steep targets set for ourselves for the year were
met. I would like to take this opportunity to congratulate everyone on this
achievement and thank the team for the effort they have put in.
Accounting policies
1. The auditors" report is available for inspection at the company"s registered
office.
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"), the Listings Requirements of the JSE
Limited and schedule 4 to the Companies Act.
2. IFRS 3: Business Combinations, and the appendix for Reverse Acquisitions, has
been used in order to determine the accounting effects of the reverse listing.
3. A lease accrual to the value of R471 792 has been raised for the current
period in order to apply the straight-line basis of accounting as per IAS 17:
Leases, and Circular 7/2005 issued by SAICA.
4. 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 7/2002 issued by SAICA.
February February
2006 2005
R"000 R"000
Profit per financial statements 38 714 29 123
Adjustments:
Loss on sale of assets 157 12
Headline earnings 38 871 29 135
Headline earnings per share 34,45 26,49
(cents)
The ordinary shares outstanding were weighted in the calculation for the effect
of the reverse acquisition.
5. The total number of shares in issue at 28 February 2006 was 114 272 328.
On behalf of the Board
Michael van Straaten Du Toit Britz
Chief Executive Officer Financial Director
Johannesburg, 29 May 2006
Verimark Holdings Limited
(previously Creditvision Holdings Limited)
Incorporated in the Republic of South Africa
Registration number 1998/006957/06
Share code: VMK
ISIN: ZAE000068011
("Verimark" or "the company")
Directors:
M J van Straaten (CEO), F P Du T Britz, H W Bonsma*,
Dr J T Motlatsi*, J M Pieterse*
*Non-Executive
Company Secretary:
E G Schubert
Registered office:
67 CR Swart Drive, Corner CR Swart Drive and Freda Road, Bromhof 48, Randburg
2154
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
www.verimark.co.za
Date: 29/05/2006 08:00:13 AM Produced by the JSE SENS Department
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