JSE-listed Prada Technologies posted an attributable loss of R28.7 million for the year to June. Auditors have qualified the results and expressed concern over the company`s ability to continue without additional financing.
However, Prada financial director Frikkie Nel says the company has signed a large African deal which should rescue the company. No further details were provided.
"As with all African deals, there is a high risk but also a high return. This deal should bring in the necessary capital we need," says Nel.
He says the group is now focusing a large amount of energy on its African operations as the local market has a number of companies playing in the same wireless communications field.
Commenting on the ongoing dispute with Brainware over a cancelled acquisition of a Brainware subsidiary, Nel says the company is hoping to have the legal battle settled in the next six months.
The dispute arose late in 2000 and remains in the courts. Nel admits the continued dispute has drained resources, but the company has made a R6 million provision for the possible non-settlement of the failed acquisition.
Other exceptional items reflected include an R11 million write-off for cancelled pay-for play game, Brainiack.
Prada`s alpha numeric calling system, Company Call, was also written down by R5 million, adding to the R25 million exceptional items figure.
Nel says the company has cleared its books and is now in a position to reflect any additional growth as profit.
Related stories:
PradaTech writes off R11m on cancelled project
Share