How ELB plans to plug shock R271m loss
Capital equipment and engineering group reels from loss-making Gamsberg Zinc contract
ELB group, a provider of capital equipment and engineering services, is seeking more funding from lenders as it grapples with cashflow problems stemming from a loss-making contract. The company said after the market closed on Friday it made a loss of R271m in the six months to December, from a profit of R52m a year before. “The results for the period have been dominated, and severely impacted, by the losses incurred on the Gamsberg Zinc project in the Northern Cape, currently being commissioned by ELB Engineering Services,” the group said. Although the plant was now operational, delays in the final performance testing process had resulted in additional costs and a delay in receiving the final milestone payments, ELB said. “In addition, the group has incurred additional costs as a result of remedial work required to bring the tendered and implemented design of the plant up to the contracted specifications,” it said. The group said it was “vigorously pursuing all possible recoveries”...
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