VIL
29/10/2015 15:27
QUARTER
PRICE SENSITIVE
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