Elexir Technology Holdings, which incurred a R2.78 million loss for the 18 months to end-February, is still in talks to sell off its operating assets.
CEO James Casey says that during the period management was focused on rationalising the group in a bid to reduce debt within operating companies, enabling management to explore alternative strategies.
The group has closed Elexir SA, disposed of property in Pitstop, disposed of the Lucent division in Elexir Computer Services and has restructured the balance sheet through the exchange of shares for debt.
Elexir is still trading under cautionary, since it is still in talks around the restructuring and disposal of its operating businesses.
"Management is currently in negotiations to dispose of Elexir Computer Services, a wholly owned subsidiary of Elexir Technology Holdings," Casey says. "This is in an effort to assist the company`s strategy to reduce current levels of liabilities residing in the business."
Once that deal has been achieved, he adds, management will pursue other opportunities to create value for shareholders.
Revenue for the 18 months came to R16.76 million (for the year to August 2003, revenue totalled R40.9 million). An operating profit of R430 000 was recorded, with a pre-tax profit of R288 000.
Casey says the loss was the result of the restructuring exercise. "This further resulted in the deferred tax of R2.5 million being written back, resulting in a loss attributable to shareholders of R2.8 million. The proceeds from the restructuring activities have been utilised to reduce the liabilities."
Current assets of R2.44 million, of which R71 000 is cash, compare with current liabilities of R2.97 million. At the end of the period Elexir had a net asset value of -0.09c a share.
The results, released yesterday afternoon, just beat the JSE`s extended deadline for their publication. The stock exchange warned earlier this month that if the results, which should have been released at the end of last month, were not published by today, the share would be suspended.
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