COVID-19 prompt companies to delay earnings publication

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  • Companies now have to deal with a double-edged impact of an already dire economic conditions in a hyperinflationary environment and now the implacable financial and economic impacts of COVID-19
  • Proplastics and Unifreight announce delay in annual financial results publication citing the impact of COVID-19
  • Other companies already forecast missed annual targets as they struggle to deal with the chaos created by COVID-19 on business operations

Harare – Delay in the publication of financial statements by local listed companies is already precedent following the abrupt changes in reporting currency and the need to adopt the requirements of IAS 29, but it seems the trend will continue than expected as companies struggle to deal with business disruptions caused by the novel coronavirus (COVID-19) global pandemic.

This means, companies now have to deal with a double-edged impact of an already dire economic conditions in a hyperinflationary environment and now the implacable financial and economic impacts of COVID-19.

In an announcement to shareholders published on Wednesday, Zimbabwe’s leading plastics and fittings manufacturer, Proplastics Limited confirmed that the publication of the financial results for the year ended 31 December 2019 has been delayed.

“This is due to the amount of work required to comply with the requirements of IAS 29: Financial Reporting in Hyperinflationary economies as well as the effects of COVID-19,” the Company said.

“The business shut down a week earlier than the announcement of the lockdown as a precautionary measure and work had to be performed offsite, which situation posed its own challenges”.

They announced that the financial results will be published no later than Friday 29 May 2020, per the approval from the Zimbabwe Stock Exchange (ZSE).

Likewise, transport holding company, Unifreight Africa Limited advised its shareholders on Wednesday that with the approval of ZSE, publication of its Audited Financial Results for the year ended 31 December 2019 will be made on or before 29th May 2020.

“This is due to the measures implemented in containing the spread of the COVID-19 pandemic which have had an adverse effect on co-ordination and finalization of the processes,” the Company said.

Other companies already forecasts missed annual targets as they struggle to deal with the chaos created by COVID-19 on business operations.

The World Health Organisation (WHO) has cautioned governments against lifting lockdown conditions for economic benefit as the number of COVID-19 infections continue to grow.

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