May 20, 2003
By Vera von Lieres
Cape Town - Following the sale of Sun Air to risk consultants CIRC, MillionAir would return to its core outsourcing business and was already in talks to supply two additional aircraft to customers, it said yesterday.
This reflected the considerable knock taken due to huge efforts to return Sun Air to profitability and the subsequent disposal of the airline.
In its full-year results, MillionAir wrote off R15.8 million as a result of the sale, which was finalised in April.
It reported an attributable loss of R30.1 million compared with attributable earnings of R678.4 million a year ago. The headline loss a share came to 34.3c from headline earnings a share of 1.03c a year ago.
MillionAir was in a cash negative position of R421
.8 million at the year-end against a cash positive position of R5.6 million the previous year.
Auditors Taback Pelkowitz & Berman did not qualify their audit opinion, but said MillionAir's ability to continue as a going concern depended on several factors, the most important being the financial support of major shareholders and the ability to continue with profitable operations.
Directors said a three-year lease contract had been signed with CIRC for $10.4 million.
MillionAir had bought 10 percent of the risk consultants "to continue to participate in the upside of Sun Air".
MillionAir stock closed unchanged at 9c in Johannesburg yesterday.
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