Conlog reports year-end loss

By Iain Scott, ITWeb group consulting editor

Johannesburg, 12 Jan 2001

Conlog Holdings, which is to change its name to Dynamic Cables RSA and become a telecommunications company, has reported a year-end headline loss of 76.9c a share.

Conlog Holdings is to change its name after buying Dynamic Cables SA from Cape Empowerment Trust for R16 million last month.

Dynamic Cables is a wholesale distributor of telecommunications cabling, including a variety of exclusive ranges.

Conlog has reported a headline loss of 76.9c a share compared with a 62.8c loss the previous year. Turnover fell to R106.27 million (1999: R295.2 million).

Conlog executive director Allen Pheiffer says the acquisition is retrospective, with the effective date being 1 January.

He adds that the deal is subject to suspensive conditions.

Pheiffer says the acquisition is the first step in the creation of a telecommunications company.

"The strong earnings of dynamic will allow the company to grow from a stable base and augment Dynamic with cash positive businesses in the wireless and telecommunications spheres.

"The company will adopt a conservative approach in considering any future business in order that its cash positive base not be diminished."

The company has offered to repurchase up to 40% of its issued shares at 40c a share, but Pheiffer says at least 50% of shareholders have indicated that they do not intend participating in the repurchase.

"The board regards this as a vote of confidence in the future of the company," he adds.

Conlog`s year-end results show an operating loss of R37.87 million (R22.15 million) and a fully diluted headline loss of 75.5c (56.1c) per share. The tangible net asset value rose to 46.2c (27.5c) per share.

During the year Conlog Holdings sold its investment in Satellite Data Networks and the business of its remaining subsidiary, Conlog. The Competition Commission also approved the sale of the automotive division.

A distribution to shareholders could not be paid out of revenue reserves because of an accumulated loss and was paid out of capital, reducing the share premium by R8.07 million.