Dynamic Cables hopes to end suspension

By Iain Scott, ITWeb group consulting editor

Johannesburg, 26 Sept 2003

The suspension of Dynamic Cables` share on the JSE might be lifted soon, as the company says it has made progress with the issue of tainted shares.

<B>Salient figures</B>

Dynamic Cables results for the six months to 30 June 2003.
Figures for the year-earlier period in parentheses:

Turnover: R42.75m (R39.6m)
Profit before interest: R2.1m (R2.45m)
Profit before tax: R2.41m (R2.09m)
Attributable profit: R2.41m (R2.09m)
EPS: 5.2c (4.5c)
HEPS: 5.2c (4.5c)
NAV per share: 20.4c (63.2c)
Tangible NAV per share: -1.7c (-27.4c)
Cash generated by operations: -R2.34m (3.51m)
Current assets: R28.69m (R33.18m)
Cash: R4.94m (R5.42m)
Current liabilities: R40.31m (R59.71m)

The share was suspended at the request of directors in February last year after the board became aware of possible irregularities involving shares issued from 1997 to 1999.

Acting chairman Shaun Rai says settlements have been reached with two vendors and a number of others are being negotiated.

"The board of directors expects to conclude this process before the year-end and also anticipates the lifting of the suspension of trading in the group`s shares in the near future," he says.

The group`s latest interim results, for the six months to 30 June, show an improvement on the year-earlier period, with attributable earnings up 15% from R2.09 million to R2.41 million. Turnover rose 8% from R39.6 million to R42.75 million.

Rai says the group`s start-up business, MEC Energy, has shown rapid growth and contributes about 20% of attributable profits.

"Subsequent to the half year, the telecommunications industry has experienced an upturn in activity. As a result of the investments made during the current and previous year, as well as restructuring, the group has been in a position to take advantage thereof," he says.

"The company will continue to adopt a conservative approach in considering future acquisitions and has strategies to preserve its cash-positive base and to grow the profitable operations under its control."