Phumelela breached loan covenants after shake-up of gambling industry

The horse-racing operator's profit is under threat from new rules that have seen a 3% levy on punters' winnings withheldPhumelela Gaming & Leisure said on Friday it had breached loan covenants on R300m of debt, amid uncertainty over new gambling laws that have already significantly dented its profitability.3% levy on punters' winnings being withheld, costing the company R6m on average per month in income, the group said in a statement on Friday.

“In view of the reduced profitability and the withholding of the 3% levy, the carrying value of assets may have to be reassessed,” the statement read.In March, Phumelela said the proposed amendment to Gauteng’s gambling regulations could cost it R75m a year while also damaging the local horse-racing industry.

It has said previously it was in talks with Gauteng policymakers and the province’s gambling board “in an attempt to reach a mutually acceptable resolution”.In May, Phumelela’s legal advisers recommended that it apply to the high court to set aside a report byinto allegations of maladministration and improper conduct regarding “the corporatisation of the horse-racing industry in SA”.

I see a going concern auditing question, let me read up on this.

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Sugar industry in grip of a bitter crisisNewsletter| Sugar industry in grip of a bitter crisis| Small-scale farmers, who are already struggling to stay afloat, face an even bleaker future as challenges deepen
La source: City_Press - 🏆 7. / 72 Lire la suite »

BUSINESS MAVERICK: Transnet go-slow hits vehicle and citrus industriesCan South Africa’s economy get a break? A go-slow has hit the port operations of state-run logistics company Transnet, affecting production in the key auto industry and exports such as citrus. In this winter of our economic discontent, this is the last thing South Africa needs.
La source: dailymaverick - 🏆 3. / 84 Lire la suite »