Troubled retailer Uchumi Supermarkets #ticker:UCHM has announced that it will delay the release of its financial results for the fiscal year ending June.
The NSE-listed supermarket will now issue the results on or before mid-next month. Uchumi cited delays in receipt of confirmations required to facilitate completion of the audit process.
“Uchumi Supermarkets Plc hereby notifies the shareholders and the investing public due to delays in receipt of some confirmations required to facilitate completion of the audit process, the approval and publishing of the results for the year ended 30th June 2017 will be delayed,” said Uchumi Supermarkets Chief executive officer Julius Kipng’etich.
“The Board targets that the results will be approved and published on or before 15th November 2017.”
The retailer normally releases its full year financials by October 31, but has now sought and obtained permission from the Capital Markets Authority to delay the announcement.
Companies listed on the Nairobi Securities Exchange (NSE) face suspension and delisting in addition to fines for delays in submitting reports.
Last year Uchumi also postponed the announcement of the results twice causing a three months delay, citing problems with getting proper financial information from its closed Uganda and Tanzania operations.
The chain retailer said that it was unable to get a satisfactory picture of the financial standing of the closed subsidiaries owing to government restrictions in Uganda and Tanzania combined with logistical challenges at the time of closure. It also claimed that the delay was also caused by a change in the external auditors.
Mr Kipng’etich, brought in to turn around the retailer in August 2015, is banking on a multi-pronged turnaround strategy to optimise and put the business on a growth trajectory through staff and store rationalisation, disposal of non-core property as well as engagement with suppliers and customers.