JSE fires warning shot at Blue Label over annual financial statements

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Blue Label, whose loss-making subsidiary Cell C lost market share in a competitive environment, closed at R 2.94 on the JSE on Tuesday after gaining 1.73%.

The JSE said Blue Label failed to distribute its annual financial statements and notice of the annual general meeting within the four-month period stipulated in the JSE’s listing requirements. He said the company’s listing had been marked with an “ROE” to indicate that it had not complied and that the listing of its securities was threatened with suspension and possible withdrawal.

“If the aforementioned company still does not distribute its annual report by October 31, 2019, then its listing may be suspended,” he said.

JSE’s announcement came a day after the telecommunications group informed shareholders that the integrated annual report and notice of the general meeting would be available on October 29, 2019.

“The JSE’s advice today is simply their process which should be followed whenever there is a delay in the release of results,” said Nicola White, head of investor and media relations at Blue yesterday. Label.

Blue Label previously delayed the release of results for the fiscal year ended May to the end of last month to take into account the impact of the recapitalization and restructuring of Cell C. Blue Label owns 45% of Cell C after having acquired the company in 2017.

Financial results were due to be released on August 27 and were released on September 26. Blue Label reported a loss of 6.65 billion rand for the 12 months ended May 31, compared to a profit of 1.12 billion rand a year earlier. It posted an overall loss per share of 312.49 cents and an overall loss of 304.77c.

He attributed the performance to Cell C’s business losses, the impairment of its property, plant and equipment and the impact of derecognition of its deferred tax asset and the impairment of Blue Label’s total investment in it. this. However, management said the new national roaming agreement would result in substantial savings for Cell C by reducing network and capital spending.

“These savings will be further enhanced upon achieving a goal of large-scale capital restructuring,” the company said last month.

In August, Cell C finalized a terms sheet detailing another national roaming agreement with MTN.

Last November, MTN and Cell C concluded the implementation of a national roaming agreement whereby MTN would provide 3G and 4G / LTE services to Cell C in areas where the mobile network operator had chosen to buy a blanket rather than self-build.

This means that Cell C customers outside of city centers are currently roaming on MTN’s 3G and 4G / LTE networks.

BUSINESS REPORT


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