COMPANY COMMENT
Difficulties continue to pile up at Taste Holdings
The group has to decide what to do with its luxury-goods division
The difficulties at franchise group Taste Holdings are continuing. It said in a trading update this week that its expects loss per share will be 7.8c- 8.4c for the six months to end-August. Although this is a significant improvement on the 16c loss reported in the previous year, the decrease is mostly due to the increase in the number of shares following a rights offer on January 29. The rights offer raised R398m, which was used to reduce its long-term debt from R284m to R26m, and increased the number of shares from 376-million to 473-million. The rights offer led to its underwriter and then minority shareholder, Riskowitz Value Fund, taking a 64.5% holding in the group. News that it foresees a continuation of its losses is a further blow to the group, following the disappointing numbers it produced for its full-year results. Revenue was down 5% to R1.04bn and it more than doubled its operating loss to R228m. The year also saw it bring in a new CEO, with a new board, with Tyrone Moo...
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