EC-Hold`s headline loss went down to 3.4c a share for the year to December 2003, compared with a previous loss of 7.6c a share.
An attributable loss of R3.44 million (2002: R8.93 million) was incurred on revenue of R9.39 million (R43.02 million).
"Most of the loss was incurred by Exsol, which was sold for R1 with effect from 1 January 2004," says acting chief financial officer Roy Midlane. "However, the reversal of provisions for Exsol and the recovery of certain consolidated losses will result in a profit on disposal of R900 000 in the next reporting period."
While the balance sheet shows liabilities in excess of assets, Midlane says parent MGX has subordinated R14 million of its loan claims against EC-Hold until 30 June next year and has agreed to waive interest on its entire loan claims against the company for the period from 1 January this year to 30 June next year.
"In addition, MGX has also provided a letter of support to EC-Hold subject to certain conditions. This action will enable EC-Hold to continue trading as a going concern for the foreseeable future."
He says the continuation of the company depends on this as well as the continued support of shareholders.
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