Companies

Kenya Re, four other listed firms to delay financial results

kenya re

Delegates during a Kenya Reinsurance Corporation (Kenya Re) investors briefing on August 2, 2019. FILE PHOTO | SALATON NJAU | NMG

Five Nairobi Securities Exchange (NSE)-listed firms have announced delaying the release of their full-year results citing the need for more time to complete audit processes. 

Kenya Reinsurance Corporation (Kenya Re) #ticker:KNRE is the latest company to announce the delay beyond the 30th April deadline that is required of listed firms whose financial year ends in December.

The reinsurer says it has sought and obtained approval from the Capital Markets Authority (CMA) to publish the results by end of May on the back of a change in valuation of unearned premium and claims.

“The delay occurred because of a change in actuarial valuation methodology in respect to unearned premium reserves and claims reserve to an approach recommended by the Insurance Regulatory Authority Kenya,” said the reinsurer in a notice to shareholders.

Kenya Re joins Crown Paints Kenya #ticker:CRWN, East African Cables #ticker:CABL, Home Afrika #ticker:HAFR and WPP Scangroup #ticker:SCAN who have also informed shareholders of the delay in releasing results.

CMA regulations require listed firms to prepare and publish their annual performance statements within four months of the close of the financial year.

Financial performance is crucial in helping current and potential investors make decisions such as whether to increase or reduce stake in companies.

Both Home Afrika and East African Cables expect to release their results by the end of June, with the cable maker citing Covid-19 control measures for the missed audit timelines.

“This (delay) has been occasioned by delayed reporting of our Tanzania subsidiary as well as continued disruptions in our audit schedules due to Covid-19 pandemic,” said East African Cables.

TransCentury, the parent company of East African Cables, is also likely to delay results given that its consolidated results are inclusive of that of its subsidiary.

Crown Paints, which has informed investors to expect results by mid-June also says various measures restricting movement in Kenya, Uganda and Tanzania had delayed the audit.

Scangroup says probe into misconduct of its ex-CEO Bharat Thakrar has forced it to delay publishing its results for the year ended December as the auditor awaits the outcome of the probe.

“This has been occasioned by the ongoing investigations previously announced following management changes at the company,” said the firm.