Lots lack­ing

Finweek English Edition - - MARKETPLACE - *The writer owns shares in Fa­mous Brands.

This mi­cro-cap stock, with a mar­ket cap of some R100m, listed in mid-Fe­bru­ary and is al­ready in trou­ble with the JSE. Its year-end is Fe­bru­ary and as per the JSE list­ing rules it has three months to pub­lish re­sults. It failed to do so at the time of writ­ing, al­though it did re­lease them even­tu­ally on 17 June.

Late re­sults are in­ex­cus­able; sig­nif­i­cantly larger com­pa­nies have man­aged to pub­lish their re­sults within the time re­quired and Gold Brands should have been ready when it listed to pro­duce its first set of re­sults within the time re­quired by the JSE.

The pro­posed Harry Rams­den’s deal has fallen through, and the plan to take the Ch­e­saNyama brand to the USA sounds great but in truth it will be very tough to com­pete in the States. I can’t see it work­ing.

Lo­cally the com­pany has a num­ber of brands with a few hav­ing name recog­ni­tion, but it lacks scale and ef­fi­cien­cies such as we see with for ex­am­ple Fa­mous Brands*.

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