Dynamic Cables has achieved full-year profitability and appears to have solved the problem of the tainted share issue dating back to 1997.
The group is a wholesale distributor of telecommunications infrastructure and cabling, including a variety of exclusive ranges of telecommunications cabling.
CE Shaun Rai says the results for the year to December 2003 were restated to show an attributable loss of R4.89 million.
"At the time of preparation of the 2003 results, management were unable to assess the full impact of the liquidation of Dynatech Telecoms on the results in the financial statements," he says. "It has since come to light that additional losses were incurred and these have been recognised in full."
The group is also planning to ask the JSE to lift the suspension of its share, which has been in place since 28 February 2002.
The suspension was at the request of directors after the board became aware of irregularities involving shares issued from 1997 to 1999.
"We have successfully concluded agreements with various vendors connected to the tainted share issue dating back to 1997," says Rai. "The effect of this was to reduce the fully diluted number of shares in issue from 72 337 000 shares to 51 500 000 shares.
"We now intend approaching the court to rectify the share register to enable the company to apply to the JSE to lift the suspension of the shares."
Talks to merge with parent company Cape Empowerment Trust (CET) have been put on hold as CET is involved in various discussions that makes placing a fair and reasonable valuation difficult.
"With all operations trading profitably at last, we believe that future results will be more favourable than those currently achieved," Rai says.
Turnover for the year to December 2004 rose to R81.08 million (2003: R65.63 million) while profit before interest was up at R6.26 million (R3.88 million). A pre-tax profit of R4.37 million compares with a loss of R3.97 million previously while the group achieved attributable profit of R3.29 million (R4.89 million loss).
The net asset value (NAV) increased to 26c (4.8c) a share while tangible NAV was 10.7c (-18c). Liquidity has improved, with a current ratio of 1.2, compared with 0.8 previously.
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