VIL
24/06/2015 10:05
GENERAL
PRICE SENSITIVE
REL: 1005 HRS Veritas Investments Limited
GENERAL: VIL: Veritas Investments Business Update for FY16
NZX Release
24th June 2015
Veritas Investments Business Update for FY16
As announced to the market on 29th May 2015, the Veritas Board wishes to
provide a business update for the financial year ahead, being the year ending
30 June 2016.
The Group has undergone significant changes during the current financial year
through acquisitions of the Nosh Food Market business and The Better Bar
Company group business. The Board is aware that these changes have made it
difficult for shareholders to accurately gauge the performance, and
importantly, the potential, of the Veritas Group, including the metrics of
its four underlying businesses.
FY16 Business Update
Management has undertaken a thorough business planning exercise as a part of
its annual budget process, and the Board has approved the Group business plan
for FY16.
The context of the Group business plan is as follows.
o Mad Butcher - The key focus for the year is to open further 'Mini Mad
Butcher' stores following the launch of the first smaller format store in
Mosgiel. A commitment has been made for a store replacement site in Massey,
with this likely to come on stream mid-2016 following completion of the
development within a new high-profile retail precinct.
o Better Bar Company Group - More focus on food offerings is seeing very
positive results across this business, with music and entertainment changes
and a higher focus around sporting events. A number of sites are undergoing
changes to drive higher outdoor patronage to lift results further.
o Nosh Food Market - The business turnaround is progressing well, with a
number of changes to drive higher sales and margins, particularly with the
very successful re-launch of the VIP program, and a focus on opening the new
Pakuranga store in August 2015. The refurbished Glen Innes store is
performing well, and will be used as a template for other sites.
o Kiwi Pacific Foods - After a solid FY15, the business is looking to
increase business with key customers.
FY16 Group Revenue
The plan is for the Group to generate revenue of $86 m to $92m in FY16,
segmented as follows:
Mad Butcher $32m to $34m*
Better Bar Company group $25m to $28m
Nosh Food Market $28m to $30m
TOTAL $85m to $92m
*Mad Butcher revenue includes rebate revenue and carcass revenue. Product mix
can have a material effect on revenue, but is neutral at gross profit level.
The above table excludes Kiwi Pacific Foods, as revenue from that business is
equity accounted as a 50% Joint Venture. If Kiwi Pacific Foods is included in
the calculation, the Group would be managing more than $100m in revenue
between its four businesses.
Market guidance for FY16
The Board wishes to provide market guidance for FY16 well ahead of the next
annual meeting, as announced on 29th May 2015.
The current plan is for the Group to achieve underlying net profit after tax
(NPAT) for continued operations of $5.3m to $5.5m for FY16, which equates to
EBITDA of between $10.5m to $11.0m.
Quarterly updates
As previously stated, starting with the first quarter of FY16 ending 30
September 2015, the Board will provide the market with quarterly updates of
the performance for the Group. These quarterly updates will be provided
towards the end of the month following each quarter-end, and after the
Veritas Board meeting for that month.
This will enable investors to monitor progress and performance of the
individual businesses, and the Veritas Group as a whole.
Change of Chairman
As noted on 10th June 2015, Mark Darrow is stepping down from the Board and
from his role as Chairman on 30 June 2015. Tim Cook will take over as acting
Chairman while a review of the Board is undertaken. The market will be
notified when a permanent appointment is made.
The Board wishes to thank Mr Darrow for his considerable effort and valuable
leadership for Veritas, commencing in 2011 as a foundation director.
-ends-
For further information, contact: Tim Cook
021 764 401
[email protected]
About Veritas Investments Limited
Veritas Investments is an NZX Main Board-listed investment company focusing
in the Food and Beverage, Franchise and Hospitality sectors. 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 Limited. In September 2014 Veritas acquired the Nosh Food
Market business. In November 2014 Veritas acquired The Better Bar Company
group business.
www.veritasinvestments.co.nz
End CA:00266082 For:VIL Type:GENERAL Time:2015-06-24 10:05:29
