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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
\u201cNonetheless, 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,\u201d he said.<\/p>\n
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.<\/p>\n
\u201cThe 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.\u201d<\/p>\n
Samson pointed to unprecedented changes to Ellies, which he hoped would steer the group to improved performance and success in the market.<\/p>\n
“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.”<\/p>\n