South Africa's largest horse racing operator Phumelela Gaming and Leisure is facing suspension from the JSE. Supplied
DURBAN -  South Africa's largest horse racing operator, Phumelela Gaming and Leisure, is facing suspension from the JSE after it failed to submit its provisional report within the three-month period stipulated in the JSE’s listings requirements. “Accordingly, the company’s listing on the JSE trading system has been annotated with an ‘RE’ to indicate that it has failed to submit its provisional report timeously and that the listing of this company’s securities is under threat of suspension and possible removal,” the JSE said on Friday.

The JSE said that if Phumelela still failed to submit its provisional report by the end of November, its listing might be suspended.

However, in its trading update towards the end of last month, Phumelela informed its shareholders that it would release its results for the year to the end of July by November 29.

“Shareholders are advised that the company is in the process of finalising results for the 12 months to end July, which is taking longer than anticipated. As a result, it is now expected that the audited results will be released on SENS on or before November 29,” Phumelela said in a trading statement.

In the expected results, Phumelela said it was expecting to report a basic loss of between R80million and R100m, compared with a basic profit of R155.1m reported a year earlier.

Phumelela has been under pressure since Public Protector Busisiwe Mkhwebane ordered the Gauteng Gambling Board in May to stop the 3percent levy paid to Phumelela.

The group said the removal of the group’s 50percent share of the 6percent levy on punters’ winnings on fixed-odds bets on horse racing was threatening its profitability for the year to the end of July.

However, the group was challenging the public protector’s findings.

Phumelela closed 10.87percent lower at R2.05 on the JSE on Friday.


BUSINESS REPORT