NAIROBI, KENYA, DEC 5 — Listed sugar company-Mumias will not make public its results for the year ended June 2018 until next year, it has told investors.
The Nairobi Securities Exchange (NSE) listed firm has sought the Capital Markets Authority’s permission to delay the release of its results for three months, pushing the announcement to February 2019.
The move will delay the cash-strapped results by a total four months, having earlier secured a one month extension from the regulator.
The firm missed the November 30, deadline despite the one month extension, reflecting serious financial woes at the Western Kenya based miller.
The company has pegged the delay on among others; the ongoing review of the industry by a taskforce put in place by the government.
Through a gazette notice no 11711 of November 9, 2018, the government set up a taskforce of sugar industry stakeholders to review policy, legal and regulatory framework as well as review the current and emerging challenges and make recommendations for the development of the sugar industry in Kenya.
“Some of the aspects being looked at by the task force especially the pricing and funding mechanisms , and methods on how the stakeholders can collaborate with the National and County Governments to develope the sugar industry, are likely to affect our current restructuring plans,” the company reported in a notice to shareholders.
“Given the above and the need to include some of these recommendations as underlying assumptions in our restructuring plans, we have requested CMA for more time to await the taskforce report before we can publish our June 30, 2018 audited accounts,” it said.
The board of management says it has held various engagements with key stakeholders who confirm that they are open to further negotiations to address the financial challenges facing the company, but are also waiting for the report of the taskforce.
“We wish to assure our stakeholders that all relevant reporting and publishing extension permission has formally been sought from the CMA and we have been granted the addition three months reporting deadline extension to February 28, 2019, and will publish our audited accounts within the new timeline,” Acting CEO Patrick Chebosi said in the statement.
This consequently pushes the firm’s Annual General Meeting to next year.
This is not the first time the miller has sought an extension. In November last year, the firm sought an extension which saw it announce its results in December. The extension was sought to allow it complete internal audits.
It reported an after-tax loss of Ksh6.8 billion in the year to June; a 44.5 per cent deeper loss compared to Ksh4.7 billion in 2016.
