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Oando Explains Delay in Release of 2015 Financial Report, As It Records Another Loss in Earnings

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The Management of Oando Plc has called for calm over its inability to issue its audited accounts on 31 March, 2016, as required by the rules of the Nigerian Stock Exchange.
According to a statement released by the company recently and obtained by THEWILL, Oando declared that it expects that the process for the approval of its 2015 financials will be concluded on or before 31 May, 2016.
Oando, which declared a record N183.9 billion loss for the year 2014, the biggest loss ever in corporate Nigeria, warned of further losses, citing both “economic headwinds” and tight fiscal and monetary policies of the federal government as the causes of its bad outing in 2015. Analysts expect Oando to post another wide loss for the 2015 business year.
“We would like to advise our valued shareholders, key stakeholders, and wider investor community that from available indications we are unlikely to complete our 2015 audit and issue our audited accounts on 31 March, 2016, as required by The NSE Rules (the Rules),” the statement read.
“We have worked diligently with our external auditor, Ernst & Young (“EY”) to ensure a swift conclusion to the audit process.
“However, after reviewing the financials, EY indicated that the Accounts may likely need to be referred to the Financial Reporting Council of Nigeria (“FRC”) pursuant to Rule 5 of the recently publicised FRC Rules.
“We expect the process to be concluded on or before 31 May, 2016.
“However this is dependent on the completion of the external review process as referred to above.
“The company’s management would also like to bring to the attention of its shareholders and the investor community that the accounts of the company at FYE 2015 will be in line with its Q3 2015 performance.
“The expected decline is attributable to the industry’s downturn, prevalent economic headwinds, as well as fiscal and monetary restrictions driven by a challenging macro environment.
“While we are actively restructuring the business to adapt to this difficult period, we are optimistic and steadfast in our commitment to return to profitability in 2016.”

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