Labat Africa said on Friday that it expected its half-year losses to widen by more than 50 percent for the six months to end February. Photo: File
Labat Africa said on Friday that it expected its half-year losses to widen by more than 50 percent for the six months to end February. Photo: File

Labat Africa expects interim loss to widen

By Sandile Mchunu Time of article published Jul 5, 2021

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LABAT Africa said on Friday that it expected its half-year losses to widen by more than 50 percent for the six months to end February.

The investment holding company said in a trading statement for the six months to end February that it expected its headline loss per share (Hlps) to decline by 50 percent, moving from a restated Hlps of 3 cents a share to a Hlps of 4.5c in the current reporting period.

Its basic loss a share (Lps) for the six months to end February 2021 would decline by more than 100 percent, moving from a restated Lps of 1.2c for the six months to end February 2020 to a Lps of 4.5c during the current reporting period.

In last year’s results, the group felt the impact of the harsh lockdown measures due to the Covid-19 outbreak even though its healthcare and technology businesses performed well between March 2020 and June, but the pandemic and the subsequent five-week lockdown severely impacted the volumes in the fuel business.

As a result, the investment holding group decided to separate the force fuel business in accordance with international financial reporting standards (IFRS) 5 in the previous financial year and that the company’s operations consist of the technology business through SAMES, the bulk logistics business and the healthcare business.

However, Labat renewed its cautionary note on the disposal of its force fuel business on Friday and said the negotiations with the buyer were ongoing and likely to be finalised by the end of July.

“Shareholders are referred to the various cautionary announcements published on Sens in relation to the disposal of Force Fuel (Force Fuel) and Force Fuel Properties (Force Fuel Properties), both in business rescue, and the negotiations with an Eastern Cape based pharmaceutical business to acquire 100 percent of its operations, the last of which was dated May 13, 2021,” the group said.

This comes after the Force Fuel and Force Fuel Properties creditors’ meeting was held on April 1, which was adjourned in order to prepare an amendment to the approved business plans to allow for the submission of bids in a simpler format.

“The amendment to the approved business plans was published on June 15, 2021 and the Section 155 meeting to approve the amendment was held on June 24, 2021. The creditors present and entitled to vote approved the amendment unanimously and the practitioner is proceeding to its implementation as approved,” the group said.

Labat said its shareholders must continue to exercise caution when dealing with its securities and until such time as further announcements in respect of the above corporate actions are made.

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