The profit warnings issued by industrial telecommunications company Accord Technologies have been borne out. The listed company has seen a significant drop in revenue for the six months to September.
Turnover dropped from R120.5 million at the halfway mark in 1999 to R93.7 million in the same period in 2000.
An operating loss of R4 million for the six months was turned in compared with the R12 million loss reported in the previous period.
The company attributes the figures to "adverse trading conditions, together with the added pressure of the South African Revenue Services (Sars) investigation and the consequences thereof,"
The company fell victim to a Sars investigation and subsequent default tax payment of R36.48 million in October last year.
"The Sars investigation led to a significant amount of negative publicity, a substantially reduced share price and, understandably, nervousness among the group`s suppliers and bankers," says a company statement.
When books were closed on 30 September the group`s overdraft stood at R75.9 million.
Accord`s management says it is rethinking at its future focus, specifically relating to its involvement in distribution-orientated businesses and has warned investors it is still trading under a cautionary notice.
The share began the New Year trading unchanged from its 14c close at the end of 2000.
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