Ciboney’s latest audited report shows yet another year of loss, with the company burning $5.2 million of assets, albeit an improvement over a $7.5 million lost in 2016. On the surface the numbers don’t appear much until viewed against the fact that they have very little current assets.
The year’s results mean that the company burnt up $5.3 in cash, leaving it with just $3.6 million at the end of May and no indication when the draining will end, with management being silent on this critical area. The company has no income with the cash being used up and this was the only area for inflows in recent years for some time.
In 2011, the company had $40 million in cash funds, but poor management of resulted in a high cost for shareholders. Ciboney Group minority shareholders should be considering legal action against the directors for negligence in managing the affairs of the company.
The company had a legitimate offer in 2012 that would have transformed it, but they failed to take it further than the board room. Since then, the company has lost money each year paying out management fees and other expenses and has virtually wiped out the near $30 million cash it had when the offer was made. Had the company accepted the offer, it would have transformed it and made big gains for Ciboney’s shareholders, in all likelihood.
Now that the money has virtually run out there is no known plan to turn things around while they await the sale of a property it holds. There have been talks about a sale of the property but so far shareholders have no indication if this is so and if so how serious the offer is. The latest report on the sale is that there was an offer but the contractor Generals department want the offer for sale to be again opened to the public by way of public advertisement.
Ciboney out of cash shortly
July 31, 2017 by
