Bell Equipment profit plunges on Congolese fraud and mismanagement
BELL Equipment suffered a 28% fall in half-year profit after it was hit by fraud and mismanagement at its Democratic Republic of Congo subsidiary.Headline earnings a share slipped to 67c in the six months to June from 89c previously.The small-cap company said a forensic investigation in the DRC resulted in the dismissal of the entire local management team and some other employees."Further investigations were carried out with the assistance of independent legal and tax professionals to regularise the activities of this operation."Revenue in the review period was up 7% to R3.1bn, but net profit dipped R64.28m from R89.39m.Excluding the effects of the probe, profitability would have been higher, Bell said.The maker of heavy earthmoving machinery said global markets remained depressed throughout the first half of 2016 and the volume outlook was unchanged.Bell declared an interim dividend of 15c per share.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.