Loss-making Spicer down to one asset

By Iain Scott for Spicer

Johannesburg, 28 Sep 2001

JSE-listed Spicer Holdings, which has only one operating asset left, has reported a loss of almost R12 million for the year to 30 June 2001.

Acting chairman Coert Vorster, who stepped in to fill the post after Sas du Toit resigned to head UK company MIS, says the group's revenue decreased because of the disposal of certain assets during the year.

Du Toit was fined R4.2 million this week in connection with an insider trading investigation. This was the largest such settlement yet in SA.

Vorster says the results represent the trading activities of Swedish subsidiary Inter IT-Konsult, and MIS. The latter was disposed of with effect from 1 July this year, leaving it with the Swedish company as its only remaining operating asset.

That asset has been granted as security for financing.

Vorster says the group is dependent on the continued support of its financiers. "The company has concurred with the financiers' request to grant as security Spicer's interest in Inter IT-Konsult AB. The company had previously ceded its investment in MIS as security."

He adds that although Inter IT-Konsult performed well during the first six months, it was hurt by the slowdown in Sweden towards the end of the year.

"Current trading conditions in Sweden remain difficult."