JSE-listed Dectronic says it will not meet its financial year-end forecast, after posting an interim turnover of R785 000 - down from R10.7 million for the same period last year, a drop of 92.6%.
A headline loss of R1.6 million, or 2.3c per share, was reported for the six months to February 2000. Dectronic ran at an operating loss of R10.948 million for the period with a current liabilities figure of R3.9 million.
Commenting on the situation, the Dectronic board says: "It has become increasingly evident that the trading subsidiaries from the Dectronic group are not well positioned to continue trading synergistically, hence the group`s ability to add value from the centre is limited."
Dectronic has therefore embarked on a restructuring programme that would "best accommodate its shareholders and enable Dectronic to exploit the full potential of its JSE listing".
March saw the beginning of the restructuring programme with the sale of PDM Solutions - trading as Electric Avenue - to Dectronic`s ex-CEO Stephen Bekker for R2.2 million.
In April Dectronic announced the sale of 100% of Dectronic Products (Unipower) to Power Electronics, in which Dectronic has a 49% stake. Dectronic also relinquished its 51% stake in Serec Radio.
The company says the next phase of its restructuring programme will be implemented during the second half of the year and details are to be made public as and when transactions occur.
Accordingly, Dectronic says the profit forecast for the year to 31 August is no longer relevant.
The share remained untraded by 11am today at 14c.
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