Veritas Investments Limited has announced an unaudited net profit after tax (NPAT) of $1.7m for the six months ended 31 December 2014. The result includes one-off net costs of acquiring both the Nosh and The Better Bar Company (BBC) businesses.
Revenue of $27.4m for the six month period was an increase of 89% from the previous year ($14.5m) boosted by the addition of Nosh and BBC in 2014.
Nosh was acquired in September 2014 and is “a turn-around business that was distressed at the time of purchase and that was reflected in a purchase price below net assets. The Board is pleased with progress and the business is showing positive signs of improvement,” says Mark Darrow, Chairman, Veritas Investments.
Rod de Vries was appointed General Manager for Nosh in January 2015. The Veritas Board says Nosh is marginally behind in its turn-around plan and expects to make a small loss in the turnaround period. Nosh aims to open a new store in Pakuranga, Auckland around July 2015 and has secured a high profile site on a major arterial road directly opposite Pakuranga Plaza.
The Mad Butcher opened its 40th Store in Nelson in November 2014. “The business is tracking to targets although there is some pressure from the tight supply of product and price pressures. Wholesale red meat prices in particular have been at elevated levels and for longer peak periods, fuelled by increased export demand,” says Darrow.
Veritas Investments is a NZX Main Board-listed investment company with focus in the Food and Beverage sector. 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 and in November 2014 Veritas acquired the BBC group business.