Zaptronix has been suspended by the JSE for failing to submit its results for the year to August within the stipulated three-month timeframe.
The company, which will cease to be listed from the end of this month, also failed to appoint a designated advisor and does not have the "required audit committee composition", said the JSE in an announcement to shareholders. The stock was suspended earlier this year for not publishing results and last traded at 1c.
Zaptronix provides solutions such as video surveillance, access control, central monitoring and systems management. It last published results in May last year, when it reported its half-year figures for the six months to February. Listed entities have three months from the end of the period in which to report.
It last reported revenue of R14.1 million and a net loss of R2.845 million. The loss was due to the cost of downsizing the group rolling into the first quarter of the current financial year. The first quarter of 2012 accounted for 70% of the reported loss.
Chairperson advocate Neville Melville says the company is disappointed at the JSE's actions, as it had been in talks with the bourse. He says the company had been looking at a reverse listing with an unnamed entity.
Melville says it is a "chicken and egg" situation, as the new party would have acted on all the bourse's requirements. He adds that the financials could not be published until the financial situation was clear, which would have been resolved through the reverse takeover.
Zaptronix is "at a crossroads" and a board meeting will be required to look into options, says Melville. He says the company has divested some assets, and late payments of salaries have been sorted out.
A former staff member had complained to ITWeb that some regional offices had not received a salary since November 2012.
Zaptronix, which currently does not have its own designated advisor, was being aided in talks with the JSE by a designated advisor, explains Melville. He did not name the advisor.
Melville says once the deal had been inked, the parties would approach the JSE together to resolve the late issuing of annual results. However, after the delisting, the company is now pondering other options as it no longer has the weight of JSE rules to contend with. "It's a different ball game."
Zaptronix has cut costs substantially, notes Melville, although he was not able to say how many staff members were affected as a contract was transferred to an unnamed entity. He says it has been "trimmed right down" and is now "lean and mean".
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