In the shal­low end

Finweek English Edition - - Cover -

THIS COM­PANY – which mar­kets the Pool­cop au­to­mated swim­ming pool main­te­nance sys­tem – ar­guably gen­er­ated the most hype about its po­ten­tial for mas­sive re­turns for in­vestors. But the more im­por­tant task of gaug­ing op­er­a­tional progress has been dif­fi­cult, as APMI Hold­ings has been some­what ret­i­cent to pro­vide au­dited fi­nan­cial state­ments to Fin­week (and, pre­sum­ably, its share­hold­ers).

In early 2006 – in the midst of APMI try­ing to raise R16m by is­su­ing new shares to the pub­lic at 100c/share – there were claims it was in­volved in ne­go­ti­a­tions for the ac­qui­si­tion of a host of new SA-pro­duced swim­ming pool tech­nolo­gies. Those tech­nolo­gies would ap­par­ently con­trib­ute up to an ad­di­tional R60m in an­nual prod­uct sales.

The last set of au­dited fi­nan­cials pe­rused by us – cov­er­ing the pe­riod ended Oc­to­ber 2006 – showed no such ad­di­tional sales. In fact, to­tal turnover for APMI was a measly R2,6m, which left the com­pany R5m in the red at its bot­tom line.

By the end of its 2006 fi­nan­cial year APMI’s bal­ance sheet showed to­tal li­a­bil­i­ties of R4,9m ex­ceed­ing its to­tal “tan­gi­ble” as­sets of R4,7m (ig­nor­ing for a mo­ment good­will of R6,7m).

One thing was clear from the year to end-Oc­to­ber 2006 re­sults: APMI wasn’t worth R100m as in­ferred in the pub­lic share place­ment.¤

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