Veritas Investments has warned shareholders it is expecting net profit from continuing operations before significant items to drop from approximately $1.5 million in FY18 to between $850,000 and $1.05 million in 2019.

According to BusinessDesk, the business’s balance sheet has improved after selling Mad Butcher brand for $8 million, recording a net gain of $4.8 million during the 2018 year as a result. The business originally paid $40 million for the meat retailer in 2013.

Despite the large drop in value, 98.4 per cent of shareholders voted in favour of the sale in an effort to lower the business’s debt levels.

At the time, Veritas said the proceeds from the sale would go towards repaying $27 million owed to ANZ Bank New Zealand, and left the hospitality company, Better Bar Co, as its sole remaining asset.

Revenue rose 1 per cent in the 2018 year to $23.8 million, though net profit after tax from continuing operations fell 8 per cent to just below $1.5 million.