Labat Africa says it’s not in trouble even though its shares have been suspended on the JSE since October 2023. Last month the company announced the purchase of an IT company which it said would boost revenue and ease its liaibilities. Now it has submitted a headline update to the JSE for its financials ending 31 May 2024, which shows that the company continues to bleed, but not nearly as badly as it bled in the year before.

On 17 September 2024 Labat put out a statement to allay investor fears, saying that the share suspension was mostly due to listing requirements and compliance issues. The SENS statement read that “First and foremost, the company wishes to reassure its shareholders and stakeholders that Labat remains a going concern.

“The suspension of the company's shares on the JSE is a matter that the company is addressing with the utmost seriousness and diligence and it is actively working to lift the suspension”

Now it appears that some action is underway, spurred in part by Labat’s interest in buying IT Classic Capital in a paper deal worth over R16 million. One of the preconditions of the transaction was that Labat presented its outstanding financials to the JSE by the end of November 2024.

On 2 December 2024, Labat’s board issued a trading statement on the JSE’s SENS advising shareholders “that the company will reflect a decrease in the total comprehensive loss” for the year ended 31 May 2024 compared to the prior year.

Without divulging revenue and operating costs, Labat said the basic loss per share was expected to decrease by 73.85% to 3,74 cents when compared tothe loss per share of 14.30 cents for the prior year.

Labat said the latest figures had not been reviewed or reported yet by its external auditors.

Then in another SENS announcement on the same day, Labat said it was appointing a new company secretary with immediate effect.“

Labat has been in discussions with a party that is interested in providing financial assistance as well as injecting assets into the company. One of their requirements is that the Company Secretary of Labat is changed” read the statement.“

Therefore, Labat Africa shareholders are advised that it, with mutual consent, it has terminated its company secretarial services with Light Consulting and appointed Mr Alfred van Rooyen as its company secretary with immediate effect (the statement does not mention whether Alfred van Rooyen is in any way related to Labat CEO Brian van Rooyen or whether he is Classic Trading's man of choice), replacing Light Consulting.

“Light Consulting will provide outsource services to Mr Alred van Rooyen up to 31 December 2024 to assist with the finalisation of the outstanding annual financials”

Despite the bullish sentiments coming from the board, long-suffering Labat shareholders will have to suffer a little longer as the company will only really discover its potential once the regulatory environment has changed.

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