VERIMARK HOLDINGS LIMITED - Trading Statement for The Six Months Ended 31 August 2017

Trading Statement for The Six Months Ended 31 August 2017

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 2017



Verimark is currently finalising its results for the six months ended 31
August 2017.

The first six months trading has been tough for most consumer related
retailers given tough economic conditions and heightened political
instability, both of which have resulted in lower consumer confidence.

Notwithstanding the downturn in the South African economy, Verimark has
achieved positive revenue growth. This was achieved through price decreases
as well as additional advertising spend, which increased by 43.6% in
comparison to the prior year.

Although Verimark achieved positive revenue growth, profits are down in
comparison to the prior year’s six months trading. This is due to increased
products roll out which resulted in higher advertising spend. The financial
benefits of this increase in new product rollouts will be seen in coming
months.

Shareholders are advised that a reasonable degree of certainty exists that
earnings for the year ended 31 August 2017 will be lower than for the year
ended 31 August 2016 (“comparative period”), as Verimark:

    -   will record a profit before taxation of between R1,9 million and R2,4
        million, which is between 38% and 51%, lower than the profit before
        taxation of R3,9 million reported for the comparative period;

    -   headline earnings per share is expected to be in the range of 0,92
        and 1,12 cents per share, which is between 48% and 58% lower than the
        headline earnings of 2,18 cents per share reported for the
        comparative period; and

    -   earnings per share is expected to be in the range of 0,93 and 1,14
        cents per share, which is between 48% and 57% lower than the earnings
        of 2,18 cents per share reported for the comparative period.


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

The Company`s financial results for the six months ended 31 August 2017
will be published on or about 12 October 2017.

10 October 2017

Sponsor
Grindrod Bank Limited

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