Debt-laden ARM Cement PLC (NSE:ARM) application to delay the release of its results for the financial year 2018 has been approved by the regulator.
The cement maker missed the March 30 deadline. However, its Administrators in a Public Notice dated April 30 said:
“The company has applied for and obtained approval from the Capital Markets Authority for a two-month time extension in order to publish the audited financial statements of the company for the financial year ended 31 December 2018 on or before 30 June 2019.”
“The Administrators have taken steps to address the challenges that have occasioned the expected delays in the publication of the audited financial statements. In particular, audit of the accounts of the company and its subsidiaries for the financial year 2018 is currently in progress,” they added.
ARM’s net losses in the year ended last December 2017 increased by Ksh 1.2 billion to Ksh 14.4 billion. The company cited reduced business activity and lower cash generation during the year led to a reduction in net working capital.
Before being placed under administration, the firm in its 2017 Annual Report had indicated that “The Directors have embarked on a financial restructuring plan of the Group which includes equity injection and replacement of the expensive short-term loans with long-term loan facilities.”
CMA regulations require listed firms to prepare and publish their annual and interim financial statements in at least two newspapers of national circulation within four and two months of the close of the financial year respectively.
ARM Cement was placed under administration in August 2018 to give it an opportunity to recover by keeping away creditors from attaching its property with Muniu Thoiti and George Weru of PwC taking over the management.