VIL 0.00% 6.4¢ veritas investments limited

Ann: QUARTER: VIL: Quarter One Market Update

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    					VIL
    29/10/2015 15:27
    QUARTER
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    REL: 1527 HRS Veritas Investments Limited
    
    QUARTER: VIL: Quarter One Market Update
    
    NZX Release
    
    29 October 2015
    
    Quarter One Market Update
    
    As previously advised to the market on 28 August 2015, the Board are
    providing a market update for the first quarter of FY16 performance.
    
    Mad Butcher
    
    The first quarter for Mad Butcher continues to be challenging due to high
    beef and lamb prices affecting the stores' ability to promote at attractive
    price points.  There are however signs that prices appear to be easing, which
    is positive as we enter the summer barbecue and Christmas season,
    traditionally the strongest trading period for the stores.  The new
    advertising strategy - "My Mad Butcher" - is achieving strong brand
    recognition and a very positive market response.  In addition, Mad Butcher is
    looking at other and new cost effective ways to expand its reach and
    community involvement, particularly through social media. The number of
    stores held for sale remains the same and we are working diligently to
    identify appropriately qualified franchisees for these outlets.
    
    Kiwi Pacific Foods
    
    Following our recent market announcement regarding the outcome of an
    arbitration process and a pending leave to appeal application we are
    exploring options for the ongoing business, but it is too early to have a
    definitive view on the outcome and impact.  The Board will provide updates as
    the situation and outcomes become clearer.
    
    Nosh Group
    
    The Nosh stores as a whole continue to show growth on last year and remain on
    track to be profitable in the next quarter.  Our latest Nosh store opened in
    Pakuranga on time and to budget and, following a soft launch, revenue
    continues to grow with significant marketing activity continuing in the local
    area.  The Board look forward to strong trading over the Christmas and summer
    season for all stores.
    
    Better Bar Company
    
    The Auckland bars and gastro pubs are trading to expectations, however the
    Hamilton bars continue to underperform and the Board are proactively working
    on a number of potential solutions to produce a positive outcome.
    
    In summary the Veritas Board believe that we remain on track to achieve
    guidance as announced to the market on 24 June 2015.
    
    A further market update on FY16 in respect of the second quarter will be
    provided following the finalisation of the financial results for the six
    months ending 31 December 2015, which is expected to be ready at the end of
    January 2016.
    
    Appointment of an Interim Chief Financial Officer
    
    The Board have appointed John Hames as Interim Chief Financial Officer
    following the resignation of the current CFO.  John will transition over the
    next few weeks and will remain with Veritas until the appointment of a
    permanent CFO is finalised.  John is a former Financial Controller of Westpac
    New Zealand, 2 Degrees Mobile Limited and Group Chief Accountant of Fletcher
    Building Limited.
    
    Search for a Chief Executive Officer
    
    As a result of the recent Board structural review, the Board have resolved to
    appoint a Chief Executive Officer for Veritas Investments Limited and will be
    commencing a recruitment and search exercise shortly.
    
    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:00272537 For:VIL    Type:QUARTER    Time:2015-10-29 15:27:33
    				
 
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