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Labat`s results are out

By Iain Scott, ITWeb group consulting editor
Johannesburg, 14 Oct 2005

Labat Africa has published its long-awaited results for the year to February, reporting a headline loss of 19.3c a share, compared with a 7.5c headline loss per share the previous year.

The share was suspended in July after the company failed to comply with JSE regulations stipulating that figures must be published within three months of the end of the trading period. However, the suspension has subsequently been lifted.

The delay was originally because Labat had to restate its results for the 2004 financial year to comply with generally accepted accounting practice.

The group, headed by embattled rugby boss Brian van Rooyen, has had to account for operating leases, resulting in additional operating lease expenses of R0.2 million in 2005, R0.1 million in 2004, R0.4 million in 2003 and R1.5 million in the years prior to 2003.

Revenue for the year to February 2005 amounted to R193.87 million, of which R130.81 million was from continuing operations. This compares with prior-year revenue of R175.66 million, of which R95.86 million was from continuing operations.

An operating loss of R3.33 million compares with a profit of R7.07 million previously. On a continuing operations basis, the group achieved an operating profit of R3.19 million versus R3.03 million the year before.

A pre-tax loss of R62.63 million compares with a prior year loss of R21.93 million, while the attributable loss deepened from R15.6 million to R62.95 million. A basic loss of 34.1c a share compares with a previous loss of 8.5c a share.

Labat`s auditors, RAIN Chartered Accountants, have emphasised that the ability of two subsidiaries to continue as going concerns depends on the conclusion of certain funding initiatives.

The auditors also expressed concern that no provision for liability has been made with regard to various claims and counterclaims by and against the company.

Related stories:
Labat`s losses deepen
Labat results still held up
Why Labat is late

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