- Star Africa Corporation announces further delay in publishing full-year financial results
- Ongoing audit of associate company in Botswana cited as primary reason for the extended delay
- Potential negative impact on investor perception and compliance breach with ZSE listing requirements
Harare- Star Africa Corporation, a sugar manufacturer, has announced a further delay in the publication of its full-year financial results. The company has revised its expected publication date from the initial delay of on or before 31 July 2023 to on or before 31 August 2023. The original deadline for publishing the results was 31 March 2023.
The delay has been attributed to the ongoing audit of the financial results of the company's associate company in Botswana. Star Africa Corporation applied for an extension from the Zimbabwe Stock Exchange (ZSE) and has been granted an additional month to finalize the audit and publish the audited financial statements in the press.
In a circular, the company stated that the abridged audited financial statements for the year ended 31 March 2023 will be published in the press and on their website by the revised deadline of 31 August 2023.
Failing to publish financial results on time can be viewed negatively by investors, as it may indicate poor financial management and a lack of transparency. This perception can potentially lead to a decline in the company's stock price, as investors may become more cautious about investing in the company.
Furthermore, the delay of publishing results without ZSE approval puts companies in breach of the listing requirements of the Zimbabwe Stock Exchange. Listed companies are required to publish their annual financial results within 90 days of the end of their financial year, and their interim financial results within 60 days of the end of the first half of their financial year. Failure to meet these deadlines may result in penalties, including fines or suspension from trading.
It is crucial for Star Africa Corporation to address these delays and prioritize timely publication of accurate financial information. By doing so, the company can maintain investor confidence, uphold transparency, and fulfil its regulatory obligations.
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