A WEE DRAM
CHRIS GILMOUR: Verimark a whiz at innovation but rand is the twista in the tale
Verimark is a tightly run, family controlled business with a tried and tested business strategy
Michael van Straaten, CEO of specialised retail-product group Verimark, is an irrepressible character. Always positive, even in the worst of times, he is the perfect leader for this volatile stock. The family-owned business has been around for a few decades and recently reported an outstanding set of results for the year to February 2018. Revenue rose 16% to R508m and headline earnings per share 33% to 31.9c. This performance was especially relevant considering that the South African durable goods retail market is taking major strain. The main reasons for this robust performance were the stronger rand and new, innovative products. And in true Verimark style, that’s not all. The dividend was increased 33% to 15c, placing the share on an extremely rarefied dividend yield of 12.8% at a 117c share price.The share price has moved up 62% since the beginning of 2018, with speculators no doubt expecting a healthy improvement in earnings and dividends. And this highlights the dilemma faced b...
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