VERIMARK HOLDINGS LIMITED - Trading statement for the six months ended 31 August 2016

Trading statement for the six months ended 31 August 2016

Verimark Holdings Limited
Incorporated in the Republic of South Africa
Registration number: 1998/006957/06
JSE share code: VMK
ISIN number: ZAE000068011
("Verimark" or "the Company")

TRADING STATEMENT FOR THE SIX MONTHS ENDED 31 AUGUST 2016


Verimark is currently finalising its results for the six months ended
31 August 2016.

Despite a tough retail environment due to a weaker consumer demand,
higher interest rates and negligible economic growth in South Africa,
the Verimark group expects improved profits for the first half of 2016.

As a result of the ongoing depreciation of the Rand against the US
Dollar, it became necessary for Verimark to increase selling prices in
mid-February 2016. These price increases were greater than the prior
year’s increase, in February, which impacted on sales but resulted in
improved gross profit margins.

In terms of the JSE Listings Requirements, the board of directors of
the Company wishes to advise shareholders that it is reasonably certain
that, when compared with the published results for the period ended 31
August 2015 (“comparative period”), Verimark:

-   will record a profit before taxation of between R3,4 million and
    R4,1 million, an increase of between 170% and 185%, as compared to
    the loss before taxation of R4,8 million for the comparative period;

-   headline profit per share is expected to be in the range of 1,9 and
    2,4 cents per share, an increase of between 153% and 167% compared
    to the headline loss of 3,6 cents per share for the comparative
    period; and

-   profit per share is expected to be in the range of 1,9 and 2,4 cents
    per share, an increase of between 151% and 165% compared to loss per
    share of 3,7 cents per share for the comparative period.

The information on which this trading update has been based has not
been reviewed or reported on by the Company’s auditors.

The Company`s financial results for the six months ended 31 August 2016
will be released on SENS on or about 13 October 2016.


23 September 2016

Sponsor
Grindrod Bank Limited

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