LISTED financial services group, ZB Financial Holdings Limited has for the second time postponed the publication of its financial results for the year ended 31 December 2020 due to delays in the auditing process.
The announcement has now been pushed to 30 June 2021, signaling the toll that audit delays emanating from COVID-induced disruptions are taking on the firm.
“Despite best efforts to ensure results were published by the 31st of May 2021, the Group was unable to publish as the audit process is yet to be finalised,” said a notice from the board signed by Company Secretary Tinashe Masiiwa.
“The Group sought, and obtained, the approval of the ZSE to defer the publication of the audited financial statements for the year ended 31 December 2020 by no later than 30 June 2021.”
The statements for the financial year ended December 2020 were first due – as per normal regulation on 31 March 2021.
The ZSE, recognising the unprecedented challenges companies and their auditors faced in preparing audited financial information, granted all listed companies an extension to publish their results by 30 April 2021.
ZBFH after failing to meet that extended deadline, was granted an extended period to 31 May 2021.
Analyst view: In an earlier comment, Equity Axis Chief Analyst, Respect Gwenzi commented that, although recognising challenges being faced by companies in the auditing process amidst COVID-restrictions, the delays by Zimbabwean companies have more to it, if not inefficiency.
He 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, however, does not dismiss the fact that currency changes have brought about many changes in the presentation of financials and hence difficulties in computation and collation of such.
Mr. Gwenzi anticipates that as inflation comes off and the macro-environment stabilises, preparation of financials will be back to normal soon.
Equity Axis News