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Kenya’s Uchumi supermarkets to delay release of financial results

Among Kipngetich’s strategies include adoption of a franchising model, working capital funding through shareholder loans and re-negotiation of supplier contracts.

Kenya October 31st – Uchumi Supermarkets Plc will not release its financial results for the fiscal year ending June 30, 2017 until mid-November, the retailer has said.

The Nairobi Securities Exchange listed retailer has cited delays in receipt of confirmations required to facilitate completion of the audit process.

In a public notice dated October 27, Uchumi supermarkets CEO Julius Kipng’etich said the board targets that the results will be approved and published on or before November 15, 2017.

“Uchumi supermarkets Plc hereby notifies the shareholders and the investing public that 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 June 30, 2017 will be delayed,” Kipng’etich said.

The financially troubled supermarket has sought permission from the Capital Markets Authorities to delay the results announcement, traditionally released in the month of October.

Under the Capital Markets (Securities) (Public Offers, Listing and Disclosures) regulations, listed companies must issue up to date audited financial accounts and there should be no doubt about the company’s financial soundness.

CMA directs that financial statements should be prepared in accordance with International Financial Reporting Standards and meet the minimum standards set out in the listing rules.

Interim reports should be published within 60 days of the interim reporting date and annual reports within four months of the company’s financial year end.

It is not the first time Uchumi has delayed the release of its results.

Last year, Uchumi delayed publishing its financial statements for the financial year ending June 30, 2016, which was pushed to January this year.

The retailer cited frustrations by the Ugandan and Tanzania authorities in getting information from its subsidiaries which were then facing liquidation, after closing down in October 2015.

The retailer had six and five branches in the two countries respectively.

Kipng’etich was brought in to turn around Uchumi in August 2015 after its former top management plunged the retailer into debts and losses.

The retailer posted a Ksh2.8 billion loss in its full year results for the year ending June 2016, compared to Ksh3.5 billion in 2015, with the reduction attributed to a 31.7 percent decline in operating expenses.

Among Kipngetich’s strategies include adoption of a franchising model, working capital funding through shareholder loans and re-negotiation of supplier contracts.

The retailer has also been keen on disposing non-core property to pay-off debt owed to suppliers.

By Martin Mwita

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