2 November 2004

South Africa: JSE Suspends Two Listings for Lack of Statements

Johannesburg — FAILURE to comply with JSE Securities Exchange SA rules has resulted in two companies being suspended from the bourse.

The local bourse yesterday suspended Aludie and Zeltis Holdings with immediate effect for failing to submit their provisional annual financial statements on time.

Both companies were due to release their annual financial statements last week.

Leon Broom, MD of electronic security company Aludie, said that the company was still in the process of evaluating all of its options.

"We have no intention of making any rash decisions. We will still have a lot of plans, and we are feeling very positive. Aludie will keep focusing on doing what we do best," Broom said.

The group is in the business of providing and installing access-control equipment and integrated management solutions. It also manages car parks.

Aludie issued a trading update in September informing shareholders that earnings a share and headline earnings a share for the financial year ended June 30 this year were expected to be substantially lower than the same period last year.

The board also said it was considering various options for the recapitalisation of Aludie and its subsidiaries.

The JSE's listing requirements state that a listed company needs to comply with all JSE rules, as well as provide a monthly progress report to the JSE, even when it has been suspended.

These listing requirements impose requirements on the company beyond those required under the Companies Act.

Several attempts to get in touch with Zeltis were unsuccessful.

Zeltis is an investment holding company that also provides management services to subsidiary and associate companies.

The company's main subsidiary is Denverdraft Agency, which operates a recruitment business.

In its unaudited results for the six months ended December 31 last year, Zeltis said that it was paying close attention to its group cash flow, which had also been under pressure due to either the closure or disposal of poor investments; margin-cutting in a highly competitive market; or problems associated with bad debts.

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