The worst is be­hind it

Finweek English Edition - - MARKETPLACE SIMON SAYS -

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.

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