Moneyweb blames loss on write-off and fraud

Moneyweb blames loss on write-off and fraud. Image: Des Latham, BDFM Online

Andrew Smith, Moneyweb’s UK- based CEO, said in an interview that charges had been laid against the former director.

Published: 2011/06/27 08:12:44 AM

RON DERBY

MONEYWEB, which hosts a business radio programme and a web- site of the same name, said its annual earnings suffered from the misappropriation of funds by its previous financial director, resulting in the company reporting a net loss of R3,8m for the year to end-March.

Andrew Smith, Moneyweb’s UK- based CEO, said in an interview that charges had been laid against the former director.

"Funds were misappropriated," he said, without disclosing how much. "We are anxious that the legal process can be done and over as quickly as possible," he said.

In an April statement , the media company founded by business commentator and journalist Alec Hogg, said Dannie Wessels had resigned as financial director and company secretary. John Donnelly was appointed as his replacement.

Despite the loss, Moneyweb said it "had in excess of R24m in cash reserves and remains debt free".

In the previous financial year, it reported a net profit of R1,6m.

Apart from the fraudulent activities, the company said earnings were further affected by a write-off of irrecoverable receivables, a rise in the provision for doubtful debts, and the initial costs relating to launching a portfolio of community websites under its looklocal brand.

Top-line revenue grew 30% to R35,4m from R27,2m the previous year. Advertising revenue was strong across all platforms, Mr Smith said. "We are continuing to work hard on our core platforms and are pleased with revenue growth."

Larger rival and owner of 50% of Business Day and Financial Mail, Avusa , last week reported advertising revenue growth of 10% in its full year to March.

Moneyweb sees increased contributions from its brand and from the roll-out of applications strategy on both Apple and Android platforms. It hopes to have at least 52 community websites rolled out within three years.

Moneyweb shares closed flat at 80c on Friday, valuing the company at R86m.