ELB Engineering Services placed under Business Rescue
The results for the interim period ended 31 December 2019 were negatively impacted by the depressed trading environment across all markets in which ELB operates.
ELB shareholders are advised that the business forecast for ELB Engineering Services (ELBES), a wholly-owned subsidiary of ELB, has not materialised.
This has placed unsustainable cash funding requirements on the Group and a decision has therefore been made that the Group can no longer support ELBES.
Accordingly, the ELBES board of directors has resolved to proceed with placing ELBES under business rescue in terms of the Companies Act.
This short-form announcement is the responsibility of the board of directors and is a summarised version of the Group’s full announcement and as such it does not contain full or complete details pertaining to the Group’s results.
Any investment decisions by investors and/or shareholders should be made after taking into consideration the full announcement.
The full announcement has been released on the Stock Exchange News Service on 6 April 2020 and is available for viewing on the Group’s website.
Facts and figures
- Overall reduction in trading levels across the Group
- Revenue decreased to R1 148.4 million from R1 598.1 million
- Loss before tax for the period improved to R106.6 million from R218.6 million (restated) (previously reported R218.2 million)
- Loss per share improved to 352.7 cents from 963.5 cents (restated) (previously reported 814.4 cents)
- Headline loss per share improved to 64.8 cents from 966.7 cents (restated) (previously reported 817.0 cents)
- Net asset value per share decreased to 1 396.4 cents from 1 756.9 cents at 30 June 2019 (31 December 2018: 921.5 cents (restated))
- ELB Engineering Services Proprietary Limited placed under Business Rescue
- No dividend is declared for the interim period ended 31 December 2019 (2018: Nil)
Source: Mining Review
