CMA clarifies profit warning requirements amid breaches

Capital Markets Authority (CMA) CEO Wyckliffe Shamiah on April 29, 2021. PHOTO | LUCY WANJIRU | NMG

The Capital Markets Authority (CMA) has clarified that listed companies must issue a profit warning beforehand if they expect that their full-year net income will drop by at least 25 percent.

The regulator says in a new circular that the notices will be based on the projected earnings after tax, improving on a 2016 directive that did not say whether the alerts will be on the basis of gross or net earnings.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.