Lagos – Oando Nigeria Plc on Friday explained the delay in the release of its audited result for the financial year ended Dec. 31, 2015 before the March 31 deadline, as required by the Nigerian Stock Exchange (NSE) rules.
The company in a statement made available in Lagos said its 2015 audited result would be ready on or before May 31, 2016.
The statement noted that the company had worked diligently with its external auditor, Ernst & Young (“EY”) to ensure a swift conclusion to the audit process.
“The management of Oando would like to advise its valued shareholders, stakeholders and the wider investor community that from available indications, iwe are unlikely to complete the 2015 audit.”
It stated that after reviewing the financials, EY indicated that the accounts may likely need to be referred to the Financial Reporting Council of Nigeria (FRC) pursuant to Rule 5 of the recently publicised FRC Rules.
“We expect the process to be concluded on or before May, 31, 2016. However, this is dependent on the completion of the external review process as referred to above,” the statement said.
The company also disclosed that the 2015 full year earnings would be lower in line with the third quarter 2015 performance.
“The company’s management would also like to bring to the attention of its shareholders and the investor community that the accounts of the company for 2015 would be in line with its Q3 2015 performance,” said the statement.
It explained that the expected decline was attributable to the industry’s downturn, prevalent economic headwinds, fiscal and monetary restrictions driven by challenging macro environment.
“While we are actively restructuring the business to adapt to this difficult period, we are optimistic and steadfast in our commitment to return to profitability in 2016,” it added.
It would be recalled that SEC had in November 2015 sanctioned for delayed filing of its audited financial statements (AFS) for the year ended Dec. 31, 2014.
It was sanctioned for violating post-listing obligations in accordance with applicable rules of the Exchange.
Oando then filed its 2014 result and that of its first quarter and half year 2015 interim unaudited accounts on Oct. 23, 2015. (NAN)
