Jan. 24 (Bloomberg) -- Ellies Holdings Ltd. dropped the most in more than 16 months in Johannesburg trading as the maker of satellite-television antennas said debt almost doubled and posted net asset value lower than its stock price.
Ellies fell 7.4 percent to 2.75 rand at the market close, the biggest decline since Sept. 8, 2010. That pared the shares’ 12-month gain to 31 percent.
Net asset value rose to 2.18 rand a share in the six months through October from 1.81 rand a year earlier, Johannesburg- based Ellies said in a statement today. Basic earnings per share increased to 21.01 cents from 15.16 cents. Interest-bearing debt rose by 116 million rand ($14.5 million) to 236 million rand, jumping to the equivalent of 28 percent of equity from 16 percent in October 2010.
Working capital was depressed by as much as 211 million rand since the end of April, Ellies said. Additional capital investments in production plants and equipment were funded through additional debt, it said.
“Negotiations are being finalized with the group’s bankers for the restructuring of short-term funding into term debt,” Ellies said.
--Editors: Tom Lavell, David Risser
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