Ellies to report wider six-month loss
The electronics group has been under pressure since the downturn of its mainstay business, which was closely tied to the fortunes of DStv’s satellite service
Electronics group Ellies Holdings expects to report a wider loss for the six months ended October 2023, the company said on Monday.
The group, which is in business rescue, said its headline loss for the period will be 12.81c-13.73c per share compared with a loss of 4.58c in the prior comparable period.
The stock, which was unchanged on Monday, sits at a paltry 1c and has lost 85.7% since the start of 2024.
In January, the company filed for business rescue after failed attempts to diversify into the lucrative renewable energy market.
The company has been under pressure since the downturn of its mainstay business, which was closely tied to the fortunes of DStv’s satellite service.
The group imports, manufactures and sells equipment such as aerials and power trolleys and undertakes solar installations.
Ellies said a proposal to acquire Bundu Power for R203m was scrapped after it failed to secure backing from its lenders. The deal, first announced a year ago, was subject to debt funding by bankers and shareholder approval.
The company had pinned its hopes on acquiring Bundu Power, which specialises in distributing and leasing generators and the distribution and installation of solar and related products for residential, commercial, industrial, hospitality, agricultural and recreational users.
Led by CEO Shaun Prithivirajh, Ellies is seeking to shift from a traditional satellite-based business towards smart home infrastructure, offering alternative energy solutions, water storage and connectivity.