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- Release Date: 21/05/14 16:29
- Summary: FORECAST: VIL: Veritas Board provides market update
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VIL
21/05/2014 14:29
FORECAST
REL: 1429 HRS Veritas Investments Limited
FORECAST: VIL: Veritas Board provides market update
Market Release
21 May 2014
Veritas Board provides market update
With the 2014 financial year end approaching on 30 June, the Directors of
Veritas Investments Limited (NZX:VIL) provide a market update on the trading
of the companies within the Veritas Investments group.
FY2014 forecast
Veritas re-confirms that it expects to meet its forecast of $4.2m of net
profit after tax (NPAT) for FY2014 in its first full financial year following
the acquisition of the Mad Butcher franchisee business in May 2013, however
on the basis of a different NPAT contribution across business units to that
set out in its FY2014 forecast in its Investment Statement dated 28 March
2013. This is due to slower than anticipated sales in the Mad Butcher
business, which are expected to be offset by a positive contribution from the
Kiwi Pacific Foods joint venture interest acquired in December 2013.
Trading
Third quarter sales for the Mad Butcher business to 31 March 2014 were
affected by unseasonal weather and product shortages following the 2013
drought. While the fourth quarter to date is providing improved results
following further product initiatives and a revised media approach, it is not
expected to offset the third quarter performance and a below forecast result
for the Mad Butcher business is now expected for FY2014.
A short delay in the opening of the fourth new Mad Butcher store forecast for
FY2014 in Nelson is also now expected due to resource consent issues.
Any shortfall against forecast NPAT for FY2014 in the Mad Butcher business is
expected to be offset by a positive NPAT contribution from Veritas' 50%
interest in Kiwi Pacific Foods Limited. In addition, the Board also expects
to see an improvement against forecast in the group's FY2014 tax position.
Dividend
The Board remains confident that the final dividend for the year will be
consistent with a total dividend for FY2014 of 70% of NPAT, at the top end of
Veritas' dividend policy range.
For further information please contact:
Mark Darrow
Chairman
Veritas Investments Limited
+64 21 888 858
Michael Morton
Managing Director
Mad Butcher Limited
+64 21 725 458
End CA:00250712 For:VIL Type:FORECAST Time:2014-05-21 14:29:44
