A very rough road ahead

Finweek English Edition - - MARKETPLACE -

PPC re­sults were ugly, with cur­rent as­sets now just over R2.7bn while cur­rent li­a­bil­i­ties are just over R6bn. This tech­ni­cally makes PPC in­sol­vent and the au­di­tors have “ex­pressed a dis­claimer” con­cern­ing the com­pany as a go­ing con­cern and its debt li­a­bil­i­ties. Post the March year-end, PPC has seen its debt down­graded four notches, which has made things very tough for the com­pany. I have al­ready sug­gested a sell here and while I think the com­pany will be able to sur­vive, it is not go­ing to be easy and ex­ist­ing share­hold­ers are go­ing to see mas­sive di­lu­tion when the rights is­sue hap­pens.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.