THISDAY learnt that three out of the 16 companies have not
remitted six years results to the bourse, a development that has kept investors
in the dark over their corporate earnings and possible dividend payout.
The 16 companies include; Oando Plc, Medview Airline Plc,
John Holt Plc, Thomas Wyatt Nigeria Plc, The Tourist Company of Nigeria Plc,
Goldlink Insurance Plc, International Energy Insurance Plc,, Standard Alliance
Insurance Plc, and STACO Insurance Plc
Others are Union Homes Savings & Loans Plc, Aso Savings
& Loans Plc, Resort Savings & Loans Plc, Capital Oil Plc, Deap Capital
Management & Trust, DN Tyre & Rubber Plc and Multi-Trex Integrated
Foods Plc.
THISDAY investigation revealed that most of the affected
companies are faced with operational and regulatory bottlenecks, making it
difficult to submit audited result and accounts on the Exchange.
For instance, Oando Plc that closed 2021 with a stock price
of N4.42 and N54.9billion in market capitalization has not remitted audited
financial statements for 2019 and 2020.
In July of 2021, Oando entered into an arrangement with
Securities and Exchange Commission (SEC) to settle all matters subject of
litigation, among others.
Consequently, the company held its 20018 Annual General
Meeting (AGM) and investors anticipated further release of 2019 and 2020
accounts.
However, a section of the company’s shareholders believe the
Securities and Exchange Commission (SEC) should be held responsible for Oando’s
problems.
Chairman, Progressive Shareholders Association of Nigeria
(PSAN), Boniface Okezie, said the out of court settlement was best for the
capital market and shareholders at large.
He said: “In the next few weeks, we are expecting the
company to release audited 2019 results to the public. However, in other
companies, we don’t know their problems. The management of NGX and SEC should
intervene and find out their problems.”
Aside from Oando, Medview Airline with market capitalization
N18.8billion has not submitted 2019 and 2020 results to the bourse.
The company in its interim result and accounts for the full
year ended December 31, 2019 reported N220.38million profit as against
N3billion loss reported in 2018.
The value of Medview Airlines on the floor of the NGX has
not moved below or above N1.62 in the last two years.
As at October 15, 2021, data obtained from the local bourse
showed that the company recorded zero trade and zero volume within the period
under review.
Also, the airline has been among companies listed on the
NGX’s free float deficiencies of 14.16 per cent.
Chairman of the airline, Sheik Abdul-Mosheen Al-Thunayan,
had blamed the performance on political tension and tight liquidity.
Among the mid-capitalised companies that have not remitted
results to the Exchange are three listed Savings & Loans companies worth a
total of N12.59billion in market capitalization.
The three companies are Resort Savings & Loans, Union
Homes Savings & Loans Plc and Aso Savings & Loans Plc.
With N7.37billion in market capitalization as at 2021, Aso
savings & Loans lead Union Homes Savings & Loans and Resort Savings
& Loans that closed the same year at N2.95billion and N2.27billion in
market capitalisation.
ASO Savings & Loans and Union Homes Savings & Loans
Plc have not remitted 2014 and 2020 financial year, while Resort Savings &
Loans has not submitted to the Exchange 2018 and 2020 audited results.
Meanwhile, The Tourist Company of Nigeria with N6.38billion
in market capitalization has failed to remit audited financial statements for
2020 while STACO Insurance with N4.48billion in market capitalization has
failed with comply with post-listing requirement of submitting 2018 and 2020
audited results to the Exchange.
In addition, Multi-Trex Integrated Foods with N0.36 in stock
price, closed 2021 with market capitalization of N1.34billion.
THISDAY can report that some of these companies are
undergoing restructuring, while some are about to delist from the Exchange.
For instance, The Exchange has approved for NGX RegCo to
proceed with the process of delisting The Tourist Company of Nigeria and
Multi-Trex Integrated Foods. Also, the bourse has placed Deap Capital
Management & Trust Plc on delisting watch list.
Union Homes Savings & Loans Plc, Aso Savings &
Loans, Goldlink Insurance Plc, International Energy Insurance Plc, Thomas Wyatt
Nigeria Plc, DN Tyre & Rubber are currently undergoing restructuring.
Capital market analysts attributed the non-remittance of
audited results to poor corporate earnings, demanding from capital market
regulating bodies to follow up on some of these listed companies.
The Managing Director, APT Securities and Funds Limited,
Malam Garba Kurfi said: “Oando has a special case in view of the facts that
regulatory sanctions lead to suspension of its AGM for many years. Who will
appoint an auditor to audit Oando financials impacted on early filing of
results recently and we expect the auditors to submit Oando’s audited accounts
within the frame times given to them if any.
“For Medview, the company has not been flying and some of
its flights have been disposed of to one of the operating companies. Update
information not released to the market and being suspended from trading in the
market is not enough by the Exchange.
But I expected the regulating bodies to visit the company
and know what are the plans for the market are because we are still in
darkness. For Medview to delist on the Exchange is not good for the market .The
regulators needed to revisit the suspended company and brief the market so that
the buyer would be aware.”
He suggested that: “capital markets regulators needed to be
following up with the companies and update the market on their progress report
or a dealing member assigned to them for update. This will keep the market
informed of what is going on with the company, not just mere delisting from the
Exchange.”
In his view, analyst at PAC Holdings, Mr. Wole Adeyeye said:
“Historically, some companies that had unimpressive financial year or quarter
usually submit their results late.
He said, “They usually wait for the next quarter to see if
things would turn around so as to submit the two reports together. Impressive
results usually have a positive impact on the share price and vice versa.”