Hunyani trading update after several developments

Published: 05 December 2013

Hunyani Holdings management advise that since the publication of the interim results to 30 April 2013, there have been several developments which warrant a trading update.

The sale of non-core properties in Bulawayo and Norton has been concluded. A profit on disposal of $2.1m was realized of which $1.0m was recognized at the half year.

Due to significant fire damage and extensive harvesting of compartments of mature timber the fair valuation of the forestry plantations was lower than reported at 31 October 2012 by an amount of $426,000, which is accounted as a fair value loss through the statement of comprehensive income.

Overstatement of Hunyani Flexible Products divisional results A tip-off was received that divisional management had overstated results at Flexible Products. An investigation revealed that certain inventories had been overvalued by $567,000, of which $473,000 related to prior years. Furthermore, the investigations revealed that the overstatement had been done by divisional management in order to reflect enhanced financial results. There are no indications that the group lost cash and / or inventories. New management has been deployed.

The relocation of Printopak to Harare from Bulawayo resulted in a total cost of $866,000 being incurred in the current financial year.

The above figures are the subject of an annual audit process which is currently in progress. Management states that the fundamentals of the business remain sound, the company is liquid and results are in line with expectations.
- businessdaily

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