Top Tech not to oppose bid for liquidation

Johannesburg, 13 Mar 2001

Top Info Technology Holdings (Top Tech) has decided not to oppose an application by a creditor to liquidate the company.

The beleaguered company says it reached its decision not to oppose the application after studying the independent financial overview of the company and its prospects.

Top Tech has also reported a headline loss of 22.43c per share for the six months to 31 December 2000, almost unchanged from a loss of 22.89c for the same period in 1999.

A review of the company`s accounting policies also resulted in a restatement of the figures for the 16 months to 30 June 2000, which now show an attributable loss of R46.5 million instead of the previously reported R7.8 million attributable profit.

Top Tech replaced its entire board at the end of last month and appointed Quaestor Capital as an independent adviser to conduct a review of the company.

This followed the suspension of Top Tech shares on the JSE at the request of directors, soon after the resignation of CEO Hans de Nysschen. His resignation came after only a month in the post. Chairman Justin Adriaanse and De Nysschen`s predecessor, Chris Kleingeld, resigned earlier.

An operating loss of R15.18 million was incurred in the six months to December, compared with a R3.36 million loss a year earlier. This was on turnover of R30.54 million (1999: R56.13 million).

A pre-tax loss of R27.7 million (R45.85 million) was reported.

Top Tech ended the period with current liabilities of R41.97 million compared with current assets of R15.13 million. The net asset value was -34.22c per share (-8.7c).

The results also reflect a net shareholders` deficit of R29.2 million.

Top Tech says although the liquidation will have a detrimental effect on the group`s activities, it will endeavour to minimise the impact on subsidiary companies, clients and customers.

"Until further information becomes available, the board cannot comment on the likely outcome of the liquidation proceedings," it adds.

It also says it will commission a full investigation into the cause of the company`s decline, which will be conducted in conjunction with Quaestor Capital.