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" or “the Group”)
Despite a challenging retail environment as a result of economic
instability due to cabinet reshuffles, downgrade to “junk status” from
credit agencies and a declining Gross Domestic Product, the Group expects
improved profits for the financial year ended 28 February 2018(“the 2018
The tough economic environment resulted in a volatile rand against foreign
currencies. Although the rand has strengthened significantly over the last
few months, the average rand dollar exchange rate only strengthened by
8.27%. This strengthening of the rand together with the introduction of a
greater number of exceptional products contributed to improved sales and
Review of stock levels as well as improved ranging of more products within
core retailers contributed to improved sales during the festive season and
the second half of the financial year. Improved stock management assisted
in meeting stock requirements.
Focus on reduction and containment of costs, helped to produce favourable
results. This was achieved through a renewed cost benefit analysis,
managing variable costs and elimination of wasteful expenditure, which led
to cost increases being contained to below sales growth levels and improved
Shareholders are advised that the board of directors of the Company is
reasonably certain that, when compared to the audited results for the year
ended 28 February 2017(“comparative period”):
- The Group will record a profit before taxation of between R43,0
million and R50,4 million, an increase of between 15.1% and 35.1% on
the R37,3 million for the comparative period;
- headline earnings per share is expected to be in the range of 29,5
and 34,3 cents per share being an increase of between 22,8% and 42,8%
compared to the 24,0 cents per share for the comparative period; and
- earnings per share is expected to be in the range of 29,5 and 34,3
cents per share being an increase of between 22,8% and 42,8% compared
to the 24,0 cents per share for the comparative period.
The financial information on which this trading statement is based has not
been reviewed or reported on by the Company’s external auditors.
Shareholders are advised that the Company is currently finalising its
financial results for the 2018 financial year which will be released on the
Stock Exchange News Service on or about 22 May 2018.
12 April 2018
Grindrod Bank Limited
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