Shawcell Telecommunications, which has reported its results for the six months to 30 June 2001, has restated its results for the same period a year ago as a result of fraud at its EuroPoint division.
<B>Figures at a glance</B>
Shawcell Telecommunications results for the six months to 30 June 2001
Previous comparative period's figures in parentheses (restated):
Turnover: R29.84m (R28.02m)
Operating profit: R14.61m (R12.12m)
Attributable earnings: R17.77m (R17.37m)
HEPS: 1.18c (1.16c)
Current assets: R151.3m (R196.43m)
Current liabilities: R74.95m (R131.64m)
Cash flow from operating activities: R715 000 (R29.68m)
Cash and equivalents: -R12.75m (R14.33m)
The company says that the forensic audit, commissioned in December and which uncovered substantial fraud at the division, is continuing.
The group sacked the division's MD and financial director in June last year.
After that, the company noted what it referred to as "serious irregularities", leading to an internal audit. The findings of that process resulted in the external forensic audit being commissioned.
The company says it will institute proceedings against the perpetrators of the fraud.
It adds that all losses were written off in the year-end results and no further losses are expected.
"The acquisition cost of EuroPoint has been written off and is not reflected at any value in the balance sheet," the company says.
The latest interim results do not show any marked improvement over the restated figures for the previous comparative period. Although there was an improvement in the operating margin, attributable and headline earnings were flat.
The company says that the second half of the financial year is traditionally significantly more profitable because of the seasonal nature of its business.
It says prospects for achieving enhanced earnings for the full year are sound.
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Audit reveals evidence of fraud at Shawcell
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