Kolsus warns about profits29 June 2001
Kolosus have issued a profit warning expecting their year-end results to April to be significantly worse than anticipated. The company posted a R39 million loss for the six months to last October and blamed adverse market conditions for fresh meat and leather for their poor performance. The expected turnaround in the second half of the year failed to occur, which was said to be due to foot and mouth disease. Other factors said to contribute to the expected poor year-end results were contracts with overseas clients which failed to materialise. Major shareholders, agricultural company Senwes, insist that Kolosus are still solvent and have the potential to recover. The company are still seeking to replace ceo Danie Venter who resigned last month.