Zaptronix: Trading Statement And Further Cautionar
ZAPTRONIX LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/014928/06)
Share code: ZPT ISIN: ZAE000015145
("Zaptronix" or "the company")
TRADING STATEMENT AND FURTHER CAUTIONARY ANNOUNCEMENT
Subsequent to the publication of the financial results in July in which it
was noted that Invensys PLC ("Invensys") had placed a significant initial
order ("initial order") for the company's product, Invensys has embarked on
a restructure exercise. A consequence of this restructure exercise is a
cutting of new initiatives within Invensys that has resulted in the long-
term contract with Invensys that was being negotiated, which included a
commitment to specific quantities, being modified. The modification will
reduce the committed quantities significantly. The company has not procured
components, produced or delivered any units relating to the initial order
and the directors believe that it would not be prudent to do so in light of
the current restructure within Invensys. At the time of publication of the
financial results in July, it was noted that the group's operations were not
profitable. These developments with Invensys will further adversely affect
the group's financial position. The ongoing business of the group is being
reviewed and is dependent on the conclusion and fulfilment of certain
significant contracts in the near term. In this regard, the Annual Financial
Statements that are currently being posted to shareholders include an
emphasis of matter paragraph in the audit opinion.
A number of staff have been retrenched in the company's plant in Durban.
However, the plant remains fully operational and is producing product for
customers. The company has positive current assets and cash in the bank.
Shareholders are also advised that the company is continuing with
negotiations which, when concluded, may have a material effect on the price
at which the shares of Zaptronix trade on the JSE Securities Exchange South
Africa.
Shareholders are therefore advised to continue to exercise caution when
dealing in the company's shares until a full announcement is made.
Johannesburg
2 November 2001
Sponsor
Benefique Capital
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