Exchange to sanction 23 firms for late filing of results
Capital Oil Plc and 22 other companies are to face the Nigerian Exchange Limited (NGX) sanction for late filing of 2022 audited result and accounts to investing public.
The 22 other companies are: International Energy Insurance Plc, C&I Leasing Plc, Afromedia Plc, Pharmadeko Plc, RAK Unity Petroleum Plc, Greif Nigeria Plc, Niger Insurance Plc, African Alliance Insurance Plc, Ekocorp Plc, Premier Paints Plc, Medview Airline Plc and Oando Plc.
Others are: Goldlink Insurance Plc, Resort Savings & Loans Plc, Standard Alliance Insurance Plc, Union Homes Savings & Loans Plc, ASO Savings & Loans Plc, STACO Plc, Deap Capital Management & Trust Plc, DN Tyre & Rubber Plc, and Multi-Trex Integrated Foods Plc.
Post-listing rules at the NGX require quoted companies to submit their audited results, not later than 90 calendar days, or three months, after the expiration of the period. The rules also require quoted companies to submit an interim reports not later than 30 calendar days after the end of the relevant period.
Some of the above-mentioned companies have not submitted over eight years financial statements to the bourse.
Take for instance, ASO Savings & Loans, Multi-Trex Integrated Foods, DN Tyre & Rubber and Union Homes Savings & Loans have failed to submitted over five years financial statements to investing public and the impact is reflected on the stock price on the NGX.
As gathered, most of the affected companies are faced with operational and regulatory challenges, making it difficult to submit result and accounts on the Exchange.
Take, for instance, National Insurance Commission (NAICOM) had cancelled the licence of Niger Insurance and Standard Alliance because the firms were unable to settle claims for over three years.
The financial reports of companies show that while Niger Insurance had contract liabilities of N11.5 billion, while Standard Alliance had contract liabilities of N3.9 billion.
Findings show that N15.4 billion total insurance contract liabilities have been transferred to the receivers/liquidators of Niger Insurance Plc and Standard Alliance Plc, following the cancellation of the certificates of registration of the companies.
Also, Rak Unity Petroleum Company currently has a market capitalisation of merely N16.99million, according to the NGX. Its shares outstanding stands at just 56,624,533.
Rak Unity Petroleum Company has one major investor who controls the ownership of the company’s shareholdings.
This company is Toparte Nigeria Limited. According to information obtained from Rak Unity Petroleum’s full-year 2020 financial year result, Toparte Nigeria Limited owns a total of 48,131,159 units of shares which amounts to about 85per cent of the total shareholding. This leaves other investors (including the investing public), with just 8,493,734 units of shares (15per cent ).
The adverse effect of this situation is that the company’s stock lacks liquidity. The absence of free float, therefore, makes it impossible to trade the stock.
Nearly four years since 2015, the share price has declined from N0.50 to N0.30. Liquidity is still almost non-existent, and no one seems to be buying or selling the stock, despite the rather consistent dividend payments the company continues to dole out.
The petroleum marketing company suffered slow revenue in 2020 and led to a loss of about N64.2million in 2020 from a loss of N39.78million in 2019.
At the Annual General Meeting (AGM) of RAK Unity, Petroleum Company in 2021, shareholders resolved to put the company into members’ voluntary winding up.
Before liquidation, the Company had disposed of its physical assets to Asharami Synergy Limited at a total cost of N59,541,562, and the said amount was factored into payment due from Asharami Synergy Limited.
