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A general view of an Ellies Electronics store in Johannesburg. 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. Picture: PAPI MORAKE/GALLO IMAGES
The board of embattled electronics makerEllies continues to wear thin with four more board members stepping down from the company.
On Monday, the group —which is in business rescue — told shareholders that Francois Olivier and Sedzani Mudau had resigned as non-executive directors with effect from April 5, while Martin Kuscus and Sefenya Edick Lehapa stepped down with effect from April 6.
“The board thanks the directors for their contributions and wishes them well in their future endeavours,” the company said in a brief note to investors.
This comes a month after Guy Moretti, its CFO, and Darren Kramer, an independent nonexecutive director, resigned, bringing the total number of directors now out of the company to six. This leaves chair Timothy Fearnhead and CEO Shaun Prithivirajh as the only members of the board.
This comes as the group gears up to reporta wider loss for the six months ended October 2023.
In February, the company said its headline loss for the period would be 12.81c-13.73c per share compared with a loss of 4.58c in the prior comparable period.
In January, the company filed for business rescue after a failed attempt to diversify into the lucrative renewable energy market. It 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.
Ellies is seeking to shift from a traditional satellite-based business towards smart home infrastructure, offering alternative energy solutions, water storage and connectivity.
The share price, at a mere 2c, has lost 71.43% of its value since the start of 2024.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Four more directors resign from struggling Ellies
Chair and CEO are only remaining members of board
The board of embattled electronics maker Ellies continues to wear thin with four more board members stepping down from the company.
On Monday, the group — which is in business rescue — told shareholders that Francois Olivier and Sedzani Mudau had resigned as non-executive directors with effect from April 5, while Martin Kuscus and Sefenya Edick Lehapa stepped down with effect from April 6.
“The board thanks the directors for their contributions and wishes them well in their future endeavours,” the company said in a brief note to investors.
This comes a month after Guy Moretti, its CFO, and Darren Kramer, an independent nonexecutive director, resigned, bringing the total number of directors now out of the company to six. This leaves chair Timothy Fearnhead and CEO Shaun Prithivirajh as the only members of the board.
This comes as the group gears up to report a wider loss for the six months ended October 2023.
In February, the company said its headline loss for the period would be 12.81c-13.73c per share compared with a loss of 4.58c in the prior comparable period.
In January, the company filed for business rescue after a failed attempt to diversify into the lucrative renewable energy market. It 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.
Ellies is seeking to shift from a traditional satellite-based business towards smart home infrastructure, offering alternative energy solutions, water storage and connectivity.
The share price, at a mere 2c, has lost 71.43% of its value since the start of 2024.
gavazam@businesslive.co.za
Two directors resign from embattled Ellies
Ellies to report wider six-month loss
Ellies shares crash 60% after filing for business rescue
Ellies earnings plummet as DStv installations slow in tough economy
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Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.