Elexir has been forced to restate its results for the 2004 financial year, which now show a loss instead of the profit reported before.
The group says it has had to withdraw the results published in December and republish them on the insistence of the JSE, which acted on advice from the GAAP (generally accepted accounting practice) Monitoring Panel.
The reason for the republication is that the earlier results included the profits on the restructuring deal belatedly approved by shareholders in February.
Elexir has been restructuring its assets for some time in a bid to cut debt levels. One of the deals included in the restructuring was the R1.32 million sale of a business unit to Securicom with effect from 1 January last year.
However, shareholders were not asked to approve the deal until February this year. As a result, the restated results exclude the effects of that deal.
While revenue remains unchanged at R17.44 million, the results now show an operating loss of R2.67 million, whereas the previously published results included an operating profit of R2.79 million.
A loss of R3.12 million for the period compares with a previously stated profit of R2.34 million and a headline loss of 2.18c compares with a previously reported 1.4c loss.
The group has reported a net asset value of -1.83c a share, compared with a positive value of 2.53c a share. The balance sheet also shows a current ratio (the ratio of current assets to current liabilities) of 0.43, versus a previously recorded 0.85.
"It is evident from the restated reviewed results that the group would have been technically insolvent if the restructuring transaction was not approved by shareholders in general meeting on 28 February 2005," says CEO James Casey.
"Trading conditions remain challenging but management is implementing a repositioning strategy for the group that, if successful, will improve profitability and unlock shareholder value.
"As the liabilities of the group were substantially reduced with the implementation of the restructuring transaction, as announced on 7 October 2004 and approved by shareholders in general meeting, the business can now focus on securing new business in order to operate profitably in the future."
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