Dectronic, which curtailed trading after a rescue operation was launched in September, has been placed in a solvent position for future trading, according to the corporate restructurer.
Corporate restructurer Gandalf Trust, which took control of the company in September, says that after the change in control and restructuring operations, the new directors consider that there is little inherent value in the intellectual property and investments held by the company.
<B>Figures at a glance</B>
Dectronic results for the year to 31 August 2001
Previous year`s figures in parentheses:
Operating profit before interest: -R4.68m (-R13.2m)
Net profit after tax: -R4.81m (-R14.31m)
Attributable profit: -R4.81m (-R14.68m)
HEPS: -3.56c (-4.88c)
Current assets: R237 000 (R8 000)
Current liabilities: R2.97m (R1.3m)
NTAV per share: -3.4c (1.7c)
They have decided to write down the carrying value to zero.
The directors say the company`s creditors accepted a formal compromise offer at a meeting in early October and that the compromise offer was registered with the Registrar of Companies on 30 October.
"The effect of the compromise offer is that it places the company in a solvent position for future trading as at the date of lodgement of the compromise offer," they add.
However, they are still evaluating Dectronic`s prospects and say an announcement will be made in due course.
Trading at Dectronic was curtailed and head office costs were eliminated. The financial results for the year to end-August 2001 do not reflect any revenue, but show an operating loss of R4.68 million before interest.
This compares with a loss of R13.2 million the previous year.
Related stories:
Gandalf Trust takes control of Dectronic
Share
