Auditors sound warning on Kolosus’s future
The auditors of South Africa’s largest producer of leather and hide products, Kolosus Holdings, have warned shareholders that the company's future now hangs in the balance, even though it managed to reverse a R130 ($12.5) million loss and record a small profit of R7.5 million in the year to April.
In the group’s annual report, Auditors PricewaterhouseCoopers said weaker-than-expected demand subsequent to year-end was likely impact negatively on the company’s first quarter results.
"The group is mainly financed by short-term borrowing and is, therefore, dependent on the continued support of financiers. Because of these factors a risk exists that the group may not be able to continue as a going concern," the auditors said.
As well as being a major supplier of leather to the South African and European automotive sectors, Kolosus also produces footwear and is best known in the domestic consumer market for its ‘Bull Brand’ of canned meat.
