Ellies reports 2% drop in turnover
Ellies, a listed manufacturer and distributor of electronic products related to television reception, on Friday reported a 2% decline in turnover for the year ended April 2017, to R1.3 billion.
The group reported a headline loss per share for the year of 7.45 cents, an improvement of 87% from the prior year, and a loss for the year of R249 million.
Ellies CEO, Wayne Samson, said that the year under review had been enormously challenging for the group, which is reflected in the poor results for the period.
“Nonetheless, we managed to maintain revenue at approximately R1.3 billion despite the top-line pressures and the difficulty in operating in an import-driven inflationary environment, coupled with the depressed macro-economic environment in South Africa, and the significant restructuring of our business,” he said.
Samson said that a predominant theme during the year was the financial effects of the unwinding of the infrastructure segment, which was put into effect during the previous financial year to de-risk the group.
“The unwinding resulted in R163.4 million being declared a net loss as a result of loss of control in the respective companies that were deconsolidated, and a R17.5 million performance guarantee was presented on Botjheng by Lombard Insurance Company Limited.”
Samson pointed to unprecedented changes to Ellies, which he hoped would steer the group to improved performance and success in the market.
“We are investing in several new initiatives as mentioned in this report to ensure that the brand remains a significant player in South Africa. With the continued support of our employees, we have no doubt that we will persevere.”
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