Julius Kipng’etich, Uchumi chief executive officer. PHOTO | SALATON NJAU
By CHARLES MWANIKI
Listed retailer Uchumi Supermarkets has once again
delayed the announcement of its financial results by a month to the end
of January, citing problems with getting proper financial information
from its closed Uganda and Tanzania operations.
The retailer was due to announce its full year to June 2016
results today, but it now says government restrictions in Uganda and
Tanzania combined with logistical challenges at the time of closure mean
that it is yet to get a satisfactory picture of the financial standing
of the closed subsidiaries.
It is the second postponement of the results announcement by Uchumi this year.
The retailer normally releases its full year
financials by October 31, but had sought for and obtained permission
from the CMA to delay the announcement by two months due to what it
termed a turbulent business environment.
Uchumi Chief Executive Officer Julius Kipng’etich
yesterday said the retailer is nearly finished with unravelling the
financial records of the subsidiaries, although he did not give a
specific date in January when the financial results will be made public.
“We are almost finalising the accounting work. They
(Uganda and Tanzania units) operated for only three months of the
reporting period and when they closed we did not have the chance to do a
proper accounting audit on the ground,” said Mr Kipng’etich.
“At the moment, we are working with the relevant
authorities to retrieve the information, in as much it might not be
significant from management’s point of view though important for audit,
in accordance to the International Financial Reporting Standards
(IFRS).”
Second firm to delay results
The retailer is the second firm this year to delay
the publication of its results, the other being East Africa Portland
Cement, which extended its usual reporting date by two weeks in
November.
For the half year ended December 2015, Uchumi had announced a pre-tax loss of Sh1 billion widening the negative earnings of Sh262.3 million reported a year earlier.
For the half year ended December 2015, Uchumi had announced a pre-tax loss of Sh1 billion widening the negative earnings of Sh262.3 million reported a year earlier.
Uchumi closed down its five outlets in Uganda and
six in Tanzania in October 2015, saying they were a drain on resources
given they contributed just 4.75 per cent to revenue but accounted for
over 25 per cent of the operating costs of the retailer.
cmwaniki@ke.nationmedia.com
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