Accord Technologies has restated its financial year-end results after settling a R36 million outstanding VAT payment. The company also expects a loss for the interim period.
The company stated a "deliberate misrepresentation to both the board and the external auditors" as a reason for the outstanding figure.
As a result, Accord has posted an operating loss of R38 million on revenue of R268 166, resulting in a headline loss per share of 13.5c.
The profit warning with regard to the six months to September comes as no surprise. Accord alluded to the fact in its 5 October announcement that it was to pay the South African Revenue Service (SARS) R36 million in an outstanding VAT settlement.
Accord says the accounting procedures in these restated results are in line with generally accepted accounting practices.
Accord was in danger of facing suspension of its share after the JSE warned the communications company to submit its late annual report.
The board of directors has also been reconstituted. Executive directors L Human, K Lu, D Treisman and N Abby Asch, and non-executive director N Klein exit the board, while M Gregg-Macdonald and L Wainstein join the board.
'While it is both disheartening and disappointing, the fact that the group has been able to withstand both the payment and the settlement to SARS and the losses is testimony to the solid foundation of the group," says an Accord board spokesman.
The group does expect a return to profitability, although it has not indicated as to when this will be achieved.
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