A section of the Mumias Sugar Factory. FILE PHOTO | NMG
Cash-strapped Mumias Sugar #ticker:MSC has approached the markets regulator for another extension to delay release of its results for the financial year ended June 2018, effectively pushing it forward by four months.
The miller’s board, which missed the November 30 deadline despite getting a one month extension from the Capital Markets Authority (CMA), said on Tuesday that it has been granted three more months to release the results.
“We wish to assure our shareholders that all relevant reporting and publishing extension requirements has formally been sought from CMA and we have been granted the addition three months reporting deadline extension to 28th February 2018,” said the firm Tuesday in a statement signed by acting boss Patrick Chebosi.
The move means that investors will have waited eight months to know how the Nairobi Securities Exchange-listed firm faired in the 12 months of trading ended June 2018. This may also affect the release of half year results for the ongoing financial year since they are due at end of February, going by CMA rules.
CMA regulations require listed firms to prepare and publish their annual and interim financial statements in at least two newspapers of national circulation within four and two months of the close of the financial year respectively.
Mumias has linked the latest delay to a November 9 decision by the government to set up a taskforce of sugar industry stakeholders to review the policy, legal and regulatory framework of the sugar industry.
According to the firm’s board, some of the aspects being looked at by the team include pricing, funding mechanisms and how stakeholders can work with county and national governments – which the troubled miller says will likely to affect its current restructuring plans.
“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 30th June 2018 audited accounts,” said the board in the statement today.
The latest reason for the delay, however, is a departure from that given in October when Mr Chebosi said that the extension was caused by operational matters due to “well-known” financial challenges affecting finalisation of its accounts’ audit.
The company says the release of its financials will be followed by an Annual General Meeting shortly thereafter.
Other firms which missed October 31 deadline include Kenya Power #ticker:KPLC, East African Portland Cement Company #ticker:PORT and Uchumi Supermarkets #ticker:UCHM.