Exports lift Verity back into profit

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The Independent Online
AN export-led recovery helped Verity, the manufacturer of Mission and Wharfedale hi-fi equipment, make pre-tax profits of pounds 444,000 in the six months to 31 December, after interim losses of pounds 1.4m last time, writes Diane Coyle.

Verity also announced a joint venture with Tomei, the Hong Kong consumer electronics giant, to manufacture and sell its mass- market Wharfedale range in China.

Tomei is raising its stake in Verity from 6.5 to just under 10 per cent through a subscription for new shares, bringing Verity pounds 500,000 in new capital. The shares closed up 1 2 p at 151 2 p.

Farad Azima, Verity's chief executive, said there was no sign of a general improvement in consumer electronics in Britain but exports had grown strongly. So had sales of 'home theatre' products - giant TV screens with multiple speakers.

It was essential to form the joint venture to enter the Chinese market, he said. The link with Tomei had also brought Verity savings in manufacturing and marketing.