Dynamic Cables moves from loss to profit

By Iain Scott, ITWeb group consulting editor

Johannesburg, 20 Aug 2001

Dynamic Cables RSA, formerly Conlog Holdings, has turned around since shedding its old business and changing its focus, posting a profit for the six months to 30 June 2001.

Chairman Joe Modise says the trading subsidiaries and businesses have performed well and look set to exceed the forecast earnings.

"The new direction and focus have restored the earnings base and future viability of the group," he adds.

Conlog bought telecommunications infrastructure and cabling distributor Dynamic Cables from Cape Empowerment Trust after selling its own businesses to eliminate debt.

"The company has successfully implemented the first step in the creation of a new empowerment telecommunications company," says Modise.

"The strong earnings of the operating subsidiaries will allow the company to grow from a stable base and augment Dynamic with cash positive businesses."

He adds that the company will adopt a conservative approach in considering any acquisitions so its cash positive base is not diminished.

Modise says 17 million shares were repurchased at 40c per share in the period, resulting in a reduction in share capital.

"Ten million new shares were subsequently issued to Cape Empowerment Trust for cash at 40c per share to maintain solid empowerment credentials, as insufficient shareholders participated in the share repurchase."

The Dynamic Cables share price was unchanged at 30c on the JSE this morning.