Verimark: Turnaround on track

Johannesburg - Retailer Verimark Holdings [JSE:VNK] advised Thursday that its headline earnings per share and basic earnings per share attributable to ordinary shareholders for the year ended February 2010 are expected to be at least 9.3c and 9.2c, respectively, compared to a headline loss per share and a basic loss per share of 3.4c and 3.3c, respectively, for the previous comparable period.

Verimark said the improvement in its profitability is due to better than expected sales, which for the last half of the financial year increased by approximately 47%, when compared to the same period last year. This increase came about mainly in the last few months of the period under review.

The improved sales performance was due to the further introduction of new products and improved space utilisation. In addition, focused cost control further added to the profitability.

"The uncertainties around the ability of the new management team to effect the turnaround is now something of the past given the improved trading results over the last few months. The company remains cautiously optimistic that the long awaited turnaround is firmly on track," it said.

An updated trading statement will be released once the company is able to quantify, with reasonable certainty, the expected range of the profit improvement, it said.

- I-Net Bridge