Johannesburg - Engineering group Dorbyl (DLV) has reported a narrowing in its diluted headline loss per share to 49.7 cents in the six months ended September 2012‚ from a loss of 94.4 cents a year ago.
Revenue rose to R80.72 million from R71.75 million‚ while the operating loss narrowed to R20.01 million from a loss of R33.63 million previously‚ the company reported on Thursday.
While the financial statements were an imporvement on the previous results‚ they were still “unsatisfactory”‚ the company noted.
Product prices were increased sharply in the earlier months of the period which had a positive impact on the results. The weakening of the rand over the same period helped to cushion the impact of these increases to a large extent.
In the second part of the period the main activities were aimed at finding potential strategic investors for Dorbyl as the then main shareholder‚ the RECM/Reef consortium‚ had indicated that they would not be interested to make an offer for the remainder of the shares. They sold their shares in September to African Dune Investments 311 (Pty) Ltd.
Subsequently‚ two offers for the Dorbyl shares were received‚ one from African Dune and one from an IDC Consortium.
The African Dune offer is set to close on 28 December.
However‚ a revised offer by the IDC‚ on behalf of Naledi Foundry‚ was announced on 7 December which included an increase in the initial offer consideration of 73 cents per ordinary share to 85 cents.
The Dorbyl board has recommended to shareholders to accept the revised IDC offer.
“Whilst these offer processes were underway‚ the Dorbyl Guestro operation experienced cash flow problems‚ to such an extent that a financial distressed announcement was issued on 8 October 2012 and all stakeholders were informed as such. This made operations difficult but through exceptional recommendable gallant efforts by all involved - all employees‚ management‚ directors‚ suppliers‚ customers and shareholders - the plant remained in operation and had two better months in October and November and will open again for business on 9 January 2013‚” the company said.
“The board wishes to sincerely thank all those who have been deeply involved‚ with a lot of public or very private efforts‚ to ensure that Dorbyl Guestro Castings remained a continuing business. The fact that the two offer processes are soon coming to an end is a positive and supports the Board´s view that with either one of these offers materialising‚ Dorbyl can remain a going concern‚” it said. - I-Net Bridge