In the shallow end
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.¤