VMK - Verimark Holdings Limited - Trading Update

VMK - Verimark Holdings Limited - Trading Update                                
VERIMARK HOLDINGS LIMITED                                                       
(Incorporated in the Republic of South Africa)                                  
(Registration Number:  1998/006957/06)                                          
JSE Code:  VMK ISIN:  ZAE000068011                                              
("Verimark" or "the Company")                                                   
TRADING UPDATE                                                                  
In accordance with paragraph 3.4(b) of the Listings Requirements of the JSE     
Limited, a listed company is required to publish a trading statement, as soon as
they are satisfied that a reasonable degree of certainty exists, that the       
financial results for the next period to be reported on are likely to vary by   
more than 20% from the previous corresponding period.                           
Shareholders are advised that Verimark is in the process of finalising its      
unaudited results for the six months ended 31 August 2011, which are expected to
be released on or about Tuesday 11 October 2011.                                
Headline earnings per share and basic earnings per share for the six months     
ended 31 August 2011 are expected to be between 6.4 cents and 7.8 cents,        
compared to headline earnings per share and basic earnings per share of 9.8     
cents, for the previous comparable period.                                      
The decrease in earnings is a result of:                                        
*    A marginal reduction in revenue                                            
*    An increase in costs.                                                      
As previously stated, the exceptional growth recorded by Verimark in the        
previous 2 years brought about huge pressure on the company`s operational       
infrastructure.  This resulted in some expenses increasing at a higher rate than
sales.  Although progress was made on better aligning expenses with sales, some 
expenses will take longer to align (e.g. the new single warehouse facility being
developed will only be available in a year`s time).                             
In addition new product introductions were marginally slower than anticipated   
(partly because of the increased focus on addressing the challenges with the    
company`s infrastructure).  However a number of new products currently being    
launched have tested exceptionally well and will benefit turnover growth in the 
6 month period ahead.                                                           
The financial information on which this trading update is based has not been    
reviewed or reported on by the Company`s auditors.                              
6 October 2011                                                                  
Johannesburg                                                                    
Sponsor                                                                         
Grindrod Bank Limited                                                           
Date: 06/10/2011 14:07:01 Supplied by www.sharenet.co.za                     
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.