Here is a list of ZSE companies that have delayed earnings releases and the reason why

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HARARE – Of the Zimbabwe Stock Exchange-listed companies that are due to announce financial results for the year ended 31 December 2020, a number have confirmed they will be delaying to given timelines subject to various challenges among them the coronavirus pandemic and consolidation of other operations.

According to ZSE regulation, companies should publish their financials within three (3) months from the end of the financial period being reported on. This, therefore, means that companies with a financial year ending December should have published their results by the end of March.

The ZSE, recognising the unprecedented challenges companies and their auditors faced in preparing audited financial information, granted the companies additional time to finalise publication of the financials.

Fidelity Life Assurance of Zimbabwe Limited – 26 April 2020

The company announced that it will further delay releasing its full-year results for the financial year ended 31 December 2020 by a month, thus taking it to the end of May. The company said it is in the process of restating its 2018 and 2019 financial statements in accordance with the separation of its Pooled Fund between policyholders and shareholders.

The company noted that, The Company recently completed a comprehensive exercise to separate its Pooled Fund of assets between policyholders and shareholders to ensure greater transparency and compliance with the requirements of the Insurance Act (Chapter24:07) and the Pensions and Provident Act (Chapter 24:09). We, therefore, are required to restate our previously published results for 2018 and 2019 to reflect the outcomes of the Asset Separation exercise and this has led to a delay in the publishing of our 2020 financial statements.”

Zimre Holdings Limited – 28 April 2021

In an announcement dated 28 April 2021, the Group said it will delay publishing its financial results for the year ended 31 December 2020 on the need to consolidate Fidelity Life Assurance of Zimbabwe Limited into ZHL as a subsidiary following its acquisition in 2020.

The Group said, “ZHL has therefore sought and been granted leave by the Zimbabwe Stock Exchange to publish its 2020 Financial Statement on or before 31 May 2021.”

FBC Holdings – 30 April 2021

Citing deferment due to non-completion of the audit assurance process as a result of the sub-optimal working arrangements arising from the implementation of lockdown rules, the Group said that it has deferred the publication of its Audited Financial Statements for the year ended 31 December 2020 from the previously granted extension deadline of 30 April 2021 to a date no later than 14 May 2021.

“We advise that the Reserve Bank of Zimbabwe and the Zimbabwe Stock Exchange have each separately approved the deferment of the publication of the Group’s 2020 Audited Financial Statements to 14 May 2021.”

Padenga Holdings – 30 April 2021

The company said that the ZSE has granted approval for a 14-day extension period in which to publish its Financial Statements for the year ended 31 December 2020. The results will be published on or before 14 May 2021.

“The delay by Padenga in publishing its financial statements has been caused by the need to finalise the year-end audit. The external auditors for Padenga and for Dallaglio are still reviewing the consolidated numbers,” the Group said.

Zeco Holdings – 30 April 2021

In an announcement dated 30 April 2021, the company said it has failed to publish its Audited Financial Results by the extended deadline of 30 April 2021 due to the current COVID-19 pandemic circumstances.

We sought a further extension from the ZSE which was granted on condition that we publish by 18 May 2021. We apologise for any inconvenience caused.

Proplastics – 30 April 2021

Also citing COVID-19 induced disruptions, the company said it will now be publishing its year-end financial results on or before the 14th of May 2021.

“This has been necessitated by the need to ensure conclusion of the year-end audit process which fell behind schedule mainly due to the impact of the COVID-19 related lockdown at the beginning of the year.”

Edgars Stores Limited – 4 May 2021

In a notice to shareholders, the Company advised that following unanticipated delays in the finalization of the audit, Edgars Stores Limited “Edgars” has sought and obtained approval from the Zimbabwe Stock Exchange (ZSE) to defer publication of the financial statements for the year ended 10 January 2021 to on or before 31 May 2021.

“The delay was due to a late start of the audit process due to Covid-19 lockdown. There were increases in the complexity of reporting issues in the current economic and the regulatory environment which required extended involvement of experts both in the preparation of financial statements and the audit thereof.”

Lafarge – 4 May 2021

Citing complexities within the operating environment, the Company said that it has sought and obtained permission from the ZSE to defer publication of its results for the year ended 31 December 2020 and will now be published on or before 14 May 2021.

Hwange Colliery Company Limited – 5 May 2021

The company said that it is delaying the publication of financial results of the year ended 31 December 2020 to a period up to 31 May 2021.

This has been necessitated by the need to ensure conclusion of the year-end audit process which fell behind schedule due mainly, to the impact of the COVID-19 related national lockdown at the beginning of the year, said the Company.”

Equity Axis Chief analyst Respect Gwenzi said the delays are common given the background of COVID-19. He said it has been very difficult for auditors to conclude their audits given the restrictions in movement in the first 2 months of the year when lockdowns were much stricter.

He, however, highlighted that some jurisdictions with even bigger companies by size, which would typically take more time to fully conclude the preparation of financials, such as South Africa have already, to the majority released their 2020 earnings results.

“This goes to show that the delays in publication of Zimbabwean companies’ financials had more to it, if it is not inefficiency,” said Mr Gwenzi.

The realities of Zimbabwe’s environment are such that the changes in currency brought about many changes in the presentation of financials and hence difficulties in computation and collation of such. In some instances prior year financials would have to be restated, thus requiring more time to complete the financial reporting exercise. Mr Gwenzi, however, anticipates that as inflation comes off and the macro-environment stabilises, preparation of financials will be back to normal soon.

Equity Axis News

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