VIL
26/08/2014 08:42
FLLYR
REL: 0842 HRS Veritas Investments Limited
FLLYR: VIL: 2014 Preliminary Full Year Result
Market Release
26th August 2014
Veritas delivers on Full Year Profit and declares Increased Dividend
Veritas Investments Limited ("Veritas"), which acquired the Mad Butcher
business in May 2013 and a 50% share in Kiwi Pacific Foods in December 2013,
is pleased to report its full year EBITDA of $6.3m and net profit after tax
(NPAT) of $4.3 million, in line with earlier market guidance and the forecast
in the Investment Statement dated 28 March 2013. Veritas confirms a fully
imputed full year dividend of 8.16 cents per share ($3.047 million),
resulting in a final dividend payment of 4.22 cents per share. This
represents an 11% increase on the forecast full year dividend.
This result was achieved on the basis of a different contribution across
business units to that set out in the FY2014 forecast, due to slower than
anticipated sales in the Mad Butcher business over an unseasonal summer
period, which were offset by a positive contribution from the Kiwi Pacific
Foods joint venture interest.
Mad Butcher Results
"We were particularly pleased with the last quarter's results from the Mad
Butcher business following a difficult summer trading period. As previously
mentioned it has been a tough retail environment, with protein shortages and
increased competition from supermarkets. By adapting our marketing approach
and quickly taking advantage of opportunities resulting from market changes
that opened up pork supply, we were able to deliver value to our customers,
helping to drive sales for the franchise stores and finishing the year off
strongly." commented Mad Butcher CEO Michael Morton.
Gross margin for the year ended 30 June 2014 was $7.8m versus the prior year
of $7.4m. Whilst the protein shortages in red meat drove pricing up and
changed customer purchasing habits meant that carcass revenue was down on
forecast, rebate income from white meat was up, partially offsetting the
gross margin impact on this. The slower than expected summer trading and
delays in new store openings did result in the gross margin being lower than
forecast.
Three of the four planned stores were opened in the year, the fourth in
Nelson has been delayed to November 2014 due to building consent delays.
The Mad Butcher business contributed $6.3 million EBITDA ($4.2 million NPAT)
to the group for the financial year.
Kiwi Pacific Foods
Our new investment in Kiwi Pacific Foods has already started to contribute
positively to the Group contributing $0.25m after tax for the seven months
and we will now build on those results and look for growth in export markets
in the years ahead. The business is tracking to plan. We are enjoying working
with our Joint Venture partner Antares Restaurant Group who hold the New
Zealand Burger King franchise.
Dividend
In line with the interim dividend in February 2014 the Board has now approved
increased fully imputed full year dividend payments of 70% of NPAT resulting
in a full year dividend of $3.047m. This is an 11% increase on the forecast
full dividend of $2.66m.
The record date for the final dividend will be 12 September 2014 and payment
date will be 26 September 2014.
Chairman Mark Darrow commented "After a difficult mid part of the year we
were very pleased at how strongly the Mad Butcher business finished the year,
as well as the initial contribution from Kiwi Pacific Foods that saw us
achieve the profit levels outlined in our capital raising prospectus. It has
been very satisfying for the Group to achieve the last two years of
forecasted results and I thank management and my fellow Directors for all
their hard work."
The Year Ahead
Darrow concluded "The Board has completed a lot of work around Investment
Strategy and acquisition activity is positive with new opportunities
frequently being presented. Our focus is adding other food service related
businesses to the Group. Earlier in the year we appointed a CFO, Adrienne
Roberts, previously CFO of Charlie's Group to ensure that we have the right
level of resources to continually appraise and evaluate acquisition
opportunities as they come along and ensure that we are selective with what
we bring in to the Group.
We will update the market if and when any opportunity is realised."
At this stage, no guidance on the expected FY15 result will be made to the
market. A more detailed presentation will be made at the Shareholders Annual
General meeting, scheduled for 5th November 2014.
About Veritas Investments Limited
Veritas Investments is an NZX-listed investment company focusing in the Food
and Beverage sector. The shell company was formed in December 2011 and made
its first acquisition of the Mad Butcher franchisor business in May 2013
through a reverse acquisition transaction. A further investment was made in
December 2013 for 50% of Kiwi Pacific Foods. Veritas continues to look for
additional acquisitions in the food, beverage and franchise sectors.
Mark Darrow
Chairman, Veritas Investments
+64 21 88 88 58
Michael Morton
Chief Executive, Mad Butcher
Director, Veritas Investments
+64 21 725 458
End CA:00254375 For:VIL Type:FLLYR Time:2014-08-26 08:42:41
