TransCentury Limited #ticker:TCL and its subsidiary East African Cables #ticker:CABL have now set a new deadline for releasing financial results for last year, citing an ongoing transaction that carries material impact on the reports.
The two companies, already in breach of the April 30 deadline for releasing results for the year ended December 2018, said in a joint statement that the results will now come in on or before July 31.
“The regrettable delay is due to the ongoing transaction earlier announced via a joint cautionary announcement on 26th April 2019,” the two firms said on Tuesday, adding this has impacted on audit timelines.
“The transaction, which is at an advanced stage involves multiple entities in different countries with the Group and a complex legal process.”
This means results will come out about three months late considering that the Capital Markets Authority (CMA) expects all NSE-listed firms to publish their results within four months after end of financial year and follow that with annual general meeting.
The two firms, both facing capital constraints, say due to the materiality of the undisclosed transactions to the business, they require additional technical reviews and interpretations. “We are currently in the process of concluding the audit process of separate entities for subsequent consolidation to the company and group financial statements and are confident to complete and publish the audited statements on or before 31 July 2019.”
The two companies are operating in a negative working capital position contrary to the rules governing issuers at the Nairobi bourse.
CMA had tasked East African Cables to submit monthly status updates on implementation of its undertaking to remedy the working capital position within one year while TransCentury was required to provide quarterly updates on progress made in improving the situation.