EC-Hold`s directors say current prospects for the continuation of the group are uncertain after all operations except Barlows Communications incurred losses in the year to 30 June.
<B>Salient figures</B>
EC-Hold results for the year to 30 June 2003.
Figures for the 18 months to 30 June 2002 in parentheses.
Revenue: R62.99m (R186.07m)
Operating profit before forex loss, depreciation, exceptionals and interest: -R11.72m (-R6.29m)
Profit before tax: -R13.72m (-R18.23m)
Attributable profit: -R13.82m (-R24.36m)
HEPS: -17.1c (-11.3c)
EPS: -13.3c (-23.4c)
Current assets: R19.85m (R60.55m)
Bank balances: R11.94m (R3.26m)
Current liabilities: R18.4m (R33.31m)
Parent MGX Group yesterday announced restructuring plans that included the possible sale of EC-Hold to Eurevest Leasing, headed by former MGX chairman Ronnie Price.
EC-Hold says Eurevest will offer minority shareholders 20c a share if it buys the group. The alternative is for shareholders to convert their shareholding into subordinated loan notes in MGX with a face value of 240c a share - the amount the Securities Regulation Panel (SRP) ordered MGX to offer EC-Hold minorities.
The ruling, which has been the subject of a long-running dispute between MGX and the SRP, came after the SRP ruled that Mandy Rebecca Price Trust and MGX had amassed EC-Hold shares before the announcement of MGX`s firm intention to make an offer to EC-Hold minority shareholders.
"Due to the high costs of maintaining the listing of EC-Hold, the board may consider either a delisting or a voluntary winding-up of the company," the directors say. "Current prospects for the continuation of the EC-Hold Group are uncertain."
The group`s auditor, Deloitte & Touche, has issued an unqualified audit opinion, although the report contains a matter of emphasis with respect to the ability of EC-Hold to continue as a going concern.
In the year under review EC-Hold incurred an attributable loss of R13.82 million and a headline loss per share of 17.1c.
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