The worst is behind it
Distribution and Warehousing Network (Dawn) results were a shocker although a headline loss of 269.2c a share was an improvement on the loss per share of 318.3c in the previous year. Post results it raised R358m in a rights issue of which R275m was used to repay short-term bridging loans. The last year was also characterised by serious restructuring for the group while it wrote down and impaired a total of R352.2m. But the worst should be behind Dawn and with the rights issue it should be able to get back on its feet and start to regain lost market share. That all said, I will just wait and see for now as conditions are still tough. While management has done much of the hard work it needed to do, the final stretch of getting back to profitability is still ahead.