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Verimark struggles to improve earning losses

13 Oct 2015

Specialist retailer Verimark (VMK) on Monday reported its results for the six months ended August 2015, which showed little change from the losses it reported in the year-earlier period.

Verimark CEO Michael van Straaten.

Image source: Financial Mail

"The ... trading conditions (in the first half) remained challenging as consumer confidence weakened further due to higher interest rates, negligible economic growth and disruptions due to erratic power supply as a result of load shedding.

"As with all other South African importers, Verimark continues to experience the harsh and difficult effects of the significant devaluation of the South African rand against the US dollar," the company said.

In the period under review, Verimark reported a headline loss per share of 3.6c from a headline loss per share of 3.7c in August 2014. It said revenue grew by 0.5% to R183.5m while the operating loss reduced by 26.5% to R2.98m from a loss of R4.1m in the year-earlier period.

In light of the overall trading results, the board said it considered it prudent not to declare a dividend.

"Dividend payments will be reconsidered in accordance with the existing payout policy on completion of the current financial year," it said.

Looking ahead, Verimark said it expected the economic environment to remain challenging.

"Efforts to improve the group's performance are becoming evident with the increased rate of new product introductions, containment of supply chain and operating costs, strengthening in the cash position and focus on making the business more efficient. The board is therefore confident that the medium- and long-term prospects of Verimark remain positive."

Source: BDpro

Source: I-Net Bridge

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