Auditor questions Bryant's health

Cape-based Bryant Technology - which is suspended on the JSE - has narrowed its loss in its latest full-year results, but is still viewed with caution by its auditor.

The company, which did not achieve any revenue for the year to end-June, reported an attributable loss of R254 000, compared to last year's loss of R346 000. Its auditor, KPMG, has marked the audit as qualified due to concerns over Bryant's ability to continue as a going concern.

The company's loss during the year was attributed to the costs of listing on Johannesburg's bourse, as well as a failed acquisition. On 23 March, the company told shareholders its proposed acquisition of an interest in Capmed Holdings had lapsed, but that Bryant was "pursuing the purchase of substitute assets".

However, the company is taking steps to improve its liquidity and - after the end of the financial year - had entered in an agreement with its main shareholders to finance a short-term loan of R10 million. The loan will cover the cost of restructuring, acquisitions and black economic empowerment (BEE) arrangements.

In addition, negotiations are still under way between the company's main shareholders and creditors to whom Bryant owes R2 million in a long-term loan account that may see the shareholders acquire the loans and cede them to Bryant at a nominal cancellation value.

In addition, the company decided - at a recent annual general meeting - to continue operating as a technology and technology trading business, while proceeding with its restructuring, acquisition of other assets and BEE arrangements.

The company said it was "at an advanced stage of negotiations to acquire a number of additional assets, and to make the arrangements to become a broad-based BEE-controlled company". As such, it is still trading under cautionary.