Auditor's disclaimer on PPC's future

PPC's results yesterday included a disclaimer from auditor Deloitte & Touche saying it could not draw a conclusion on the cement producer's ability to continue as a going concern.

"Subsequent to year-end, Standard & Poor's released its report in which the credit rating of PPC was lowered to below investment grade. As a result of this downgrade, domestic medium-term notes to the value of R1.75-billion became due and payable in the short term as per clause 11 of the domestic medium-term note programme memorandum, thus creating a liquidity challenge," Deloitte said in its auditor's conclusion.

PPC, which gave figures for the six months to end-March after changing its financial year-end from September to March, reported a 25% jump in after-tax profit to R351-million, on slightly lower sales for six months to end-March.

Revenue fell 1% to R4.5-billion, yesterday's results statement said.