Ellies, a supplier of electrical and hi-tech electronic goods, including photovoltaic solar power and other alternative energy solutions, is going into liquidation.
In January, Ellies entered into voluntary business rescue after its bankers refused to fund the + R200 million acquisition by Ellies of backup power specialist, Bundu Power.
The group failed to publish its interim results for the six months ended 31 October 2023, which were required to be released within three months of the period end.
When the interim results were published, they showed a revenue drop by 30.6% to R353 million.
Its loss per share increased by 205% to 13.23 cents, while its headline loss per share increased by 190% to 13.3 cents.
Apparently ‘manageable levels of load shedding’ worked to its disadvantage.
‘The continued and increased load shedding, whilst negatively affecting the economy and which had historically benefitted the group, decreased significantly from May 2023 as Eskom’s planned maintenance was postponed and the use of diesel for Open Cycle Gas Turbines kept load shedding at manageable levels.’
This resulted in a significant decrease in demand for inverter trolleys and solar products and, together with an oversupply in the market.
With near-perfect conditions for Ellie’s alternative energy products, it raises the question of why the company failed to excel.
The reason was simply poor management. While its competitors made millions, Ellies sat back and happily handed the market to them, according to the Daily Investor.