A total of 16 companies worth N109.11billion in market capitalization have failed to comply with post-listing requirements of the Nigerian Exchange Limited, NGX, of filing audited result and accounts at stipulated period, THISDAY investigation has revealed.
THISDAY learnt that three out of the 16 companies have not remitted six years results to the bourse, a development that has kept investors in the dark over their corporate earnings and possible dividend payout.
The 16 companies include; Oando Plc, Medview Airline Plc, John Holt Plc, Thomas Wyatt Nigeria Plc, The Tourist Company of Nigeria Plc, Goldlink Insurance Plc, International Energy Insurance Plc,, Standard Alliance Insurance Plc, and STACO Insurance Plc
Others are Union Homes Savings & Loans Plc, Aso Savings & Loans Plc, Resort Savings & Loans Plc, Capital Oil Plc, Deap Capital Management & Trust, DN Tyre & Rubber Plc and Multi-Trex Integrated Foods Plc.
THISDAY investigation revealed that most of the affected companies are faced with operational and regulatory bottlenecks, making it difficult to submit audited result and accounts on the Exchange.
For instance, Oando Plc that closed 2021 with a stock price of N4.42 and N54.9billion in market capitalization has not remitted audited financial statements for 2019 and 2020.
In July of 2021, Oando entered into an arrangement with Securities and Exchange Commission, SEC, to settle all matters subject of litigation, among others.
Consequently, the company held its 20018 Annual General Meeting, AGM, and investors anticipated further release of 2019 and 2020 accounts.
However, a section of the company’s shareholders believe the Securities and Exchange Commission, SEC, should be held responsible for Oando’s problems.
Chairman, Progressive Shareholders Association of Nigeria, PSAN, Boniface Okezie, said the out of court settlement was best for the capital market and shareholders at large.
He said: “In the next few weeks, we are expecting the company to release audited 2019 results to the public. However, in other companies, we don’t know their problems. The management of NGX and SEC should intervene and find out their problems.”
Aside from Oando, Medview Airline with market capitalization N18.8billion has not submitted 2019 and 2020 results to the bourse.
The company in its interim result and accounts for the full year ended December 31, 2019 reported N220.38million profit as against N3billion loss reported in 2018.
The value of Medview Airlines on the floor of the NGX has not moved below or above N1.62 in the last two years.
As at October 15, 2021, data obtained from the local bourse showed that the company recorded zero trade and zero volume within the period under review.
Also, the airline has been among companies listed on the NGX’s free float deficiencies of 14.16 per cent.
Chairman of the airline, Sheik Abdul-Mosheen Al-Thunayan, had blamed the performance on political tension and tight liquidity.
Among the mid-capitalised companies that have not remitted results to the Exchange are three listed Savings & Loans companies worth a total of N12.59billion in market capitalization.
The three companies are Resort Savings & Loans, Union Homes Savings & Loans Plc and Aso Savings & Loans Plc.
With N7.37billion in market capitalization as at 2021, Aso savings & Loans lead Union Homes Savings & Loans and Resort Savings & Loans that closed the same year at N2.95billion and N2.27billion in market capitalisation.
ASO Savings & Loans and Union Homes Savings & Loans Plc have not remitted 2014 and 2020 financial year, while Resort Savings & Loans has not submitted to the Exchange 2018 and 2020 audited results.
Meanwhile, The Tourist Company of Nigeria with N6.38billion in market capitalization has failed to remit audited financial statements for 2020 while STACO Insurance with N4.48billion in market capitalization has failed with comply with post-listing requirement of submitting 2018 and 2020 audited results to the Exchange.
In addition, Multi-Trex Integrated Foods with N0.36 in stock price, closed 2021 with market capitalization of N1.34billion.
THISDAY can report that some of these companies are undergoing restructuring, while some are about to delist from the Exchange.
For instance, The Exchange has approved for NGX RegCo to proceed with the process of delisting The Tourist Company of Nigeria and Multi-Trex Integrated Foods. Also, the bourse has placed Deap Capital Management & Trust Plc on delisting watch list.
Union Homes Savings & Loans Plc, Aso Savings & Loans, Goldlink Insurance Plc, International Energy Insurance Plc, Thomas Wyatt Nigeria Plc, DN Tyre & Rubber are currently undergoing restructuring.
Capital market analysts attributed the non-remittance of audited results to poor corporate earnings, demanding from capital market regulating bodies to follow up on some of these listed companies.
The Managing Director, APT Securities and Funds Limited, Garba Kurfi said: “Oando has a special case in view of the facts that regulatory sanctions lead to suspension of its AGM for many years. Who will appoint an auditor to audit Oando financials impacted on early filing of results recently and we expect the auditors to submit Oando’s audited accounts within the frame times given to them if any.
“For Medview, the company has not been flying and some of its flights have been disposed of to one of the operating companies. Update information not released to the market and being suspended from trading in the market is not enough by the Exchange. But I expected the regulating bodies to visit the company and know what are the plans for the market are because we are still in darkness. For Medview to delist on the Exchange is not good for the market .The regulators needed to revisit the suspended company and brief the market so that the buyer would be aware.”
He suggested that: “capital markets regulators needed to be following up with the companies and update the market on their progress report or a dealing member assigned to them for update. This will keep the market informed of what is going on with the company, not just mere delisting from the Exchange.”
In his view, analyst at PAC Holdings, Wole Adeyeye said: “Historically, some companies that had unimpressive financial year or quarter usually submit their results late.
He said, “They usually wait for the next quarter to see if things would turn around so as to submit the two reports together. Impressive results usually have a positive impact on the share price and vice versa.”