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EOH shares plummet as group delays publication of financial results

Company says to allow newly appointed group financial director time to complete financial review.

In a move that is unlikely to be well received by investors, EOH Holdings said on Wednesday that it will delay publication of its interim financial results by three weeks.

The results, for the six months ended January 31, 2019, had been expected to be released on 26 March. They will now be published on April 16.

The group’s share price fell sharply on the news, and was trading down 10.2% shortly after it informed investors about the delay.

In a statement, EOH said it is delaying publication of the results to allow newly appointed group financial director Megan Pydigadu “to complete a financial review arising, in part, from the changes to the group’s strategic direction”. Pydigadu joined EOH on 15 January.

“This includes a review of assets and projects across the group’s diverse business and geographic portfolio and will inform the requirement for a trading statement in terms of the JSE listings requirements,” it said.

Review

“The group financial director is engaging with the group’s auditors on these matters,” EOH added.

“Review of the statement of financial position (balance sheet) is an integral part of the strategic process, as mentioned in the CEO 100-day update on 11 December 2018, to ensure that the investments in various tangible and intangible assets are appropriately valued and the new IFRS (accounting) standards applicable for FY19 are appropriately applied.”

This is a developing story … check back soon for more.

This article was originally published on TechCentral here

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Maybe someone can explain to a layperson like me:

The results are the results and won’t change. How will the Financial Directors review change anything?

During the closed period, companies pass what is called RC journals.

Alas, not everything that is expressed using specific numeral expressions necessarily represents exactitude and even less truth.

I’d imagine mainly to do with the provisions and accruals. Basically by how much receivables & inventory are overstated and expenses understated. The new CFO would probably clear the decks and stuff the cupboards to get as much cupboards stuffed from a restructuring write down that can be blamed on history

Warren Buffet said there are two numbers you can trust in financial statements. One is the dividend per share, because you can verify it in your bank account. The other one is the page numbers.

J_Buys has it exactly right. This management team want to show an upward trend from here on in and will be scratching at every project to ensure that something from the past does not impact the future under their watch. I expect to see an inane non-committal comment along the lines of “well positioned for growth” in the results announcement.
With the complexities in IT projects combined with complexities and pressures of doing business in SA right now never mind the effect of IAS 15 thereon now being implemented we can all just expect more confusion as to what is actually going on. Agree …..just watch the cash and dividend number like Buffet…ignore the rest.

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