KIR - Kairos Industrial Holdings Limited - Trading update and further cautionary
KIR
KIR
KIR - Kairos Industrial Holdings Limited - Trading update and further cautionary
announcement
Kairos Industrial Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1987/002927/06)
Share code: KIR ISIN: ZAE000011284
("the Company or "KIH")
TRADING UPDATE AND FURTHER CAUTIONARY ANNOUNCEMENT
Subsequent to the previous announcement dated 5 May 2010 shareholders are
advised that the Board of KIH in consultation with the Company`s auditors has
decided to make provision against the recovery of invoices raised in relation to
its subsidiary, Brokrew Industrial ("Brokrew") in respect of the Medupi Power
Station Contract. These invoices relate to product delivered to site in terms of
Brokrew`s contractual obligations, as well as additional invoicing for agreed
changes to contractual specifications that remain unpaid by the primary
contractor. This has resulted in a breakdown in the relationship with the
primary contractor and Brokrew`s subsequent cancellation of the contract. The
primary contractor has now withheld all payments in respect of the amounts
invoiced. As a result management has deemed it prudent to provide in full for
these outstanding invoiced amounts. Brokrew is pursuing both legal and
alternative processes to enforce the recovery of the outstanding monies due.
Accordingly, the financial performance and position of Brokrew has been
affected, as has the overall position of the Company. A process of restructuring
Brokrew is being pursued and shareholders will be informed in this regard in
accordance with the JSE Limited`s ongoing requirements.
The above has resulted in the delay on the publication of the financial results
for the year ended 28 February 2010 and the reviewed preliminary results of the
Company will be published as soon as possible.
Shareholders are advised to continue exercising caution when dealing in the
Company`s securities
until a detailed announcement is made in this regard.
Pretoria
17 June 2010
Sponsor: Bridge Capital Advisors (Pty) Limited
Date: 17/06/2010 17:17:28 Produced by the JSE SENS Department.
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