After posting poor year-end results, Conlog says it has disposed of all of its non-core businesses in a bid to return to profitability. Results for the 16 months to December show an attributable loss of R61.04 million.
The operating losses and the resultant loss at which Conlog businesses were sold "severely weakened the management and the liquidity position of the group," says Conlog`s board.
"This was further aggravated by the unavoidable delays in the roll out of the marketing programme for the launch of Satellite Data Networks (SDN) and the subsequent time-consuming and costly technical disagreements with Telkom."
By the end of the financial year, Conlog had sold LGI, Quickcut Pre Press Networks and Quickmedia. Subsequent to the financial year-ends, Conlog disposed of its automotive division, Dupec, and its interests in SDN to UUNet.
For the reporting period, Conlog showed a turnover of R295 203, marginally up from the R277 559 reported for the same period in 1998. The Durban-based company also reported a loss per share of 127c for the period.
Conlog plans to focus on its pre-payment electricity, water and solar metering systems. The group believes this focus on core activities will enable its gearing and liquidity ratios to reach satisfactory levels.
Share
