Dynamic Cables may have to cancel up to 28 million of its shares following the discovery of possible irregularities in previous years.
The JSE suspended the share at the request of Dynamic`s directors on 28 February, after the board became aware of possible irregularities involving shares issued from 1997 to 1999.
<B>Salient figures</B>
Dynamic Cables RSA results for the year to 31 December 2001
Previous year`s figures in parentheses:
Turnover: R73.42m (R106.27m)
Operating profit: R7.6m (-R37.87m)
Abnormal items: R2.27m (R48.9m)
Profit before tax: R9.15m (R8.29m)
Net profit: R5.48m (R8.29m)
HEPS: 14.8c (-76.9c)
Current assets: R38.36m (R31.3m)
Cash and equivalents: R8.34m (R3.59m)
Current liabilities: R65.25m (R6.5m)
Cash generated from operations: R31.62m (-R37.19m)
The company has pointed out that none of the current directors were on the board at the time.
However, the matter has not dampened the company`s buoyancy after releasing its results for the year to 31 December 2001, with acting chairman Shaun Rai saying Dynamic has implemented the first step in the creation of a new empowerment telecommunications company, and has begun to realise the synergies between the operating subsidiaries.
"The strong earnings of these subsidiaries will allow the company to grow from a stable base and augment Dynamic with cash-positive businesses," he adds.
Rai says the new direction and focus has restored the group`s earnings base and future viability.
During the year 17 million shares were repurchased at 40c a share, reducing share capital. Ten million new shares were subsequently issued to Cape Empowerment Trust for cash at 40c each to maintain empowerment credentials, as insufficient shareholders participated in the share repurchase.
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