Share code : ADH
ISIN : ZAE000031035.
ADvTECH Limited
(Incorporated in the Republic of South Africa)
(Registration number 1990/001119/06)
("ADvTECH" or the "Company")
PROFIT WARNING
Shareholders are advised that group earnings for the six month period ended
30 June 2001 ("reporting period") will be materially lower than the earnings
reported during the comparable period last year.
The reasons for this decline are substantially due to: the underperformance
of certain operations within the Resourcing Division; additional interest
costs arising as a result of increased gearing primarily through payment of
vendor liabilities coupled with the expensing of previously capitalised
interest as development expenditure; the costs of ongoing litigation against
vendors of certain key operations within the Resourcing Division. In
addition, during the reporting period, the management team was substantially
preoccupied with negotiations with various potential third party bidders for
the business of the Company, which had an adverse impact on operations.
Since 30 June 2001, the Board of Directors of the Company has been
reconstituted, the management team has been reorganised, the Chief Executive
Officer has been replaced, the shareholder base has been stabilised and an
improvement in operating performance in all divisions is already evident.
Shareholders are accordingly advised to exercise caution when dealing in the
Company's securities until the interim results for the reporting period are
published.
Randburg
23 August 2001
Investment Bank
Nedcor Investment Bank
Legal adviser
H R Levin
Sponsor
Merrill Lynch
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