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Veritas forecasts revenue drop in 2017

NZ Newswire logoNZ Newswire 23/09/2016 Sophie Boot

Veritas Investments says revenue will drop in 2017 as Mad Butcher sales continue to fall, while its bank has extended its lending facilities beyond next year.

Revenue would be in a range of $50 million to $55m in the year ending June 30, 2017, compared with $56.5m last year, the company said on Friday.

Of that 2017 revenue, its Nosh Food Market unit was expected to deliver between $22m and $23m, compared with $22.5m in 2016.

Sales at its Mad Butcher stores would fall to between $7m to $8m, from 2016's $9.8m, and The Better Bar Company would have sales of $21m to $24m, down from $24.1m.

Last month, Veritas reported a full-year loss of $4.6m compared with a profit of $3.3m in 2015. Its underlying net profit from continuing operations was $3.16m, within its guidance range of $3m to $3.5m.

On Friday it gave 2017 underlying profit guidance of $3m to $3.6m.

The company said ANZ has "confirmed its support" for the company by extending the terms of its banking facilities beyond the 2017 financial year.

The shares last traded at 23 cents and have fallen 52.1 per cent this year, having dropped sharply after the 2016 earnings were announced.

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