'Glimmer of good news' for Mad Butcher owner?
posted on 26th September 2016
A former director of Salvus Strategic Investments, which became Veritas Investments, has criticised the company for its high-risk acquisitions strategy saying there were no clear synergies between them. He welcomes some good news that the group's bankers have continued to support Veritas and suggests shareholders will be happy, but makes no forecast for Mad Butcher or Nosh franchisees.
Veritas' share price has been severely impacted by the disappointing performance of the four acquisitions. It closed the 2014 year at $1.25, the 2015 year at $0.48 and hit a low of $0.15 on Thursday.
It has subsequently recovered to $0.23 but has a sharemarket value of only $10.0m compared with the purchase price of just over $74m for the four purchases.
Ironically, the original Salvus shareholders invested $20.1m in the company and received over 80 per cent of their capital back, while Veritas shareholders have invested $25m but these shares are worth less than 20 per cent of their issued price.
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