Oando announces delay in release of full year 2017 result
FRCN seeks detailed review of financials
Oando Plc has announced that the 2017 full year result will be delayed due to request by the Financial Reporting Council of Nigeria (FRCN), to undertake a more detailed review of the company’s results.
Oando in a press statement on its website, said: “The Financial Reporting Council of Nigeria (FRCN) has indicated interest in undertaking a more detailed review of the Company’s Audited Financial Statements (AFS), as part of their statutory review due to the issues raised by the recent investigation of the Company by the Securities and Exchange Commission (SEC).
“We envisage that the FRCN’s review might take longer than originally anticipated. Therefore, the company may not be able to file the accounts until the second week in May, the exact date of filing will be dependent on the turnaround time at the FRCN.”
Oando is currently undergoing forensic audit by the apex capital market regulator. The forensic audit was precipitated by alleged findings by SEC, following an investigation into the company, which commenced in July 2017.
SEC had in October 2017, released the findings of the investigation and called for a technical suspension on the trading of Oando shares as well as a forensic audit into its affairs.Oando had initially disagreed to what it termed, ‘steep penalties’, however, in December 2017, it issued a statement on its website, saying it would fully cooperate with SEC on the forensic audit.
Following its cooperation with SEC, Oando recently reached a peace accord with one of the shareholders, who petitioned the Commission, Dahiru Mangal, with the Emir of Kano, Sanusi Lamido, as the arbitrator.Oando assured that it will release its FYE 2017 results on conclusion of the FRCN’s review of its accounts, regardless of the ongoing forensic audit.
“Like the market, we are hopeful that this delay doesn’t in any way affect the winning streak of the Company to enable it declare its fifth consecutive profit since FYE 2016.”
A capital markets analyst who pleaded anonymity said; “Oando’s decision to fully cooperate with the SEC on the forensic audit has been received well by all stakeholders.
“The hope is that this progress will satisfy displeased shareholders that the regulator is doing their job, and that Oando is indeed a complaint Company with the interests of its shareholders at the heart of all the Company’s actions.“More importantly, the market is hopeful that the conclusion of the forensic audit will mean the swift lifting of the technical suspension on the trading of the company’s shares.”
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