The JSE has drawn shareholders' attention to Dialogue's results for the year to December, which have an emphasis of matter audit opinion, and has referred shareholders to the company's financials.
It says an annotation informing shareholders of the emphasis of matter would be removed when the company's auditor's report no longer contains a modified opinion.
The AltX-listed outsourcing company posted a surge in overall revenue to R370.4 million, from the previous year's R230.6 million, a rise of 61% for the year. Gross profit surged 121%, from R78.7 million to R174.1 million.
However, the auditors, BDO Spencer Steward, say the unqualified audit opinion contains an emphasis of matter paragraph. This says: “Without qualifying our opinion, we draw attention to the note on going concern in the directors' report, which indicates that Dialogue Group SA, a significant wholly-owned subsidiary of Dialogue Group Holdings, has an accumulated loss of R10.5 million for the year.”
The auditors also say that, as of the end of December, the company's total liabilities exceed its total assets by R17.3 million, with losses for the year of R28.2 million. In addition, Dialogue Group Holdings incurred losses of R44.4 million, down from its previous profit of R617 000. As a result, the company had total attributable losses of R58.4 million, the auditors said.
“These conditions, along with other matters as set forth in the directors' report, indicate the existence of an uncertainty that may cast doubt on the ability of Dialogue Group Holdings to continue as a going concern,” the auditors note.
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