Share

Verimark soars after positive news

Cape Town - Specialist retailer Verimark leapt by over 40% on the JSE on Monday following the release of an upbeat trading statement.

At the time of writing, Verimark had surged 42% to 81c, and - at times - looked set to go higher with sellers even cheekily offering stock at 149c in morning trade. The move in the share price is good news for shareholders who were offered 50c/share in an unsuccessful buyout offer last year.

The trading update estimated that Verimark would produce earnings of between 10.5c/share and 12.5c/share for the year ended February 2010. This is a major turnaround from the loss of 3.4c/share shown in the 2009 financial year.

Verimark directors indicated that the improvement in profitability was driven by a 47% increase in sales - thanks mainly to the introduction of new products and better space utilisation.

Most encouraging was management's pronouncement that "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".

Verimark has battled for the best part of three years to effect a turnaround, something that knocked the company's share price as low as 20c.

- Fin24.com

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.92
+0.1%
Rand - Pound
23.87
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.32
+0.1%
Rand - Yen
0.13
+0.1%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders