- Companies fail to release audited results on time
- Contravenes the BSE Act
- BSE threatens to suspend, delist them
Three listed companies, Choppies Enterprises Limited, Olympia as well as security outfit G4S face the risk of being delisted by the Botswana Stock Exchange (BSE) for failure to release and publish audited financial results on time.
This week, the Thapelo Tsheole-led domestic bourse wrote to the three companies cautioning them of failure to publish the financial results, which is in contravention to Section 3.21 of the BSE Listings Requirements.
In the communique to the companies, the BSE wrote that “Shareholders and market participants are cautioned of the threat of suspension of securities or possible termination of the listings of the same.”
According to the listings requirements, Interim reports shall be published in the press and be distributed to all shareholders as early as possible after the expiration of the first six month period of a financial year, but not later than three months after that date.
Where the financial period covers 15 months or longer, the requirements are that the interim reports shall be published in the press in respect of the first and second six months of this period.
If a listed company has not distributed annual financial statements to all shareholders within three months of its financial year end, it must publish in the press and distribute to all shareholders a preliminary report even if the information is unaudited at that time.
G4S, the sole listed security services company, was supposed to have published their audited financials for the fiscal period ending December 2017, within the first three months of 2018 but has failed, just like Olympia, a company that operates in the building material industry in Southern Africa.
Choppies, the fast moving consumer goods (FMCG) retailer was also supposed to publish its interim results for the financial year ending December 2018, within the first three months of 2018 but has failed. The companies have therefore failed to comply with Section 3.21 (b) of the BSE Listings requirements.
Section 3.21(b) reads that by failing compliance within fourteen days of dispatch of the reminder to the listed company, the committee will publish a press announcement informing shareholders that the listed company has not issued its interim/preliminary report and cautioning shareholders that the listing of the listed company’s securities is under the threat of suspension and possible termination.
Only Olympia, a company under the stewardship of Alex Kimani responded by announcing that the results are expected to be released on or about the 4th of May 2018. The company said that the delay emanated from review by the auditors, subject to third party information which has been difficult to obtain. Further the board said the accounts are still being drafted and still need to be reviewed and approved by the board. However, Olympia further announced that the results will be considerably lower than those achieved during the previous reporting period, owing to tough trading conditions.
“Macroeconomic factors in our export market contributed significantly to the decrease in earnings coupled with local consumer spend on our products,” the board said. Choppies and G4S are yet to announce on when exactly they intend on releasing the financial results.