Ayo Technology Solutions reported weaker annual results in a year marred by higher input costs, supply chain delays, the global economic downturn, litigation and ‘ongoing reputational issues’, reports BusinessLIVE.

The group’s after-tax loss widened to 3.1% to R266.1m, although it doubled the dividend to 60c a share.

‘Due to tough economic conditions worldwide, there has been a decrease in customer spend for IT equipment and the decline is expected to increase as interest rates rise and the overall cost of living increases’, the company said yesterday.

The company – which is indirectly controlled by Independent Media owner Iqbal Survé – said a subdued economic environment, in addition to the continued negative publicity and ongoing banking challenges facing the group, has inhibited its business development, organic growth initiatives, and its ability to complete significant acquisitions.

The company is involved in litigation with several parties, including banks and the PIC. These issues have occupied a ‘significant amount’ of the management’s time and focus, and has led to a ‘negative impact’ on the its ability to ‘optimise its cash on hand and return on its investments’, Ayo said.

The Mpati Commission of Inquiry into the PIC found irregularities related to its R4.3bn investment in Ayo. The inquiry, which released its report in 2020, found that the PIC’s subscription for 99.8m Ayo shares at R43 each was grossly overvalued. 

Ayo said its ongoing litigation with the PIC has affected its ability to fund its subsidiaries growth initiatives.

‘The negative media and PIC litigation has also impacted the company’s ability to acquire other companies,’ it added.

The JSE on Tuesday fined former CFO Naahied Gamieldien R250 000 for failing to comply with the bourse’s listing requirements.

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