VMK
VMK
VMK - Verimark Holdings Limited - Trading statement
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")
Trading Statement
Compared to the first six month period ended 31 August 2006 profitability
of the company has improved. However, as stated in the prospects section
of the interim results announcement on 2 November 2006, the late timing on
the introduction of new products and the weaker Rand has limited the level
of recovery.
Turnover for the 10 months to 31 December 2006 was down 3.9% compared to
the comparative period last year. Although more new products have been
launched than was indicated in 20 July 2006 trading update, these
introductions were too late to have had much impact on sales over the
Christmas period and therefore on total expected sales for the financial
year to 28 February 2007. As said at the interims, the full impact from
the introduction of these new products will only be realised in the next
financial year.
In addition supply problems were experienced with one of the key products,
which impacted materially on turnover and profitability. The company was
forced to change supplier leading to stock shortages. This difficulty has
now been resolved and we expect the sales to return to normal levels for
this product.
Selling expenses increased on the comparable period to maintain market
share. Now that the new product introductions have increased, the rise in
sales costs will be offset by a predicted improvement in sales in the next
financial year.
As a result of the above factors, Headline Earnings Per Share are expected
to be down by between 50% and 70% for the financial year to 28 February
2007 compared to the previous financial year. The company expects to
report its results for the year before the end of during April.
The financial results on which this trading statement has been based have
not been reviewed or reported on by Verimark`s external auditors.
Johannesburg
25 January 2007
Sponsor
PSG Capital
Date: 25/01/2007 15:06:04 Produced by the JSE SENS Department.
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