The market can expect telecoms operator, Huge Group to release its annual results before Monday June 13 2011, its CEO James Herbst revealed on Wednesday, after it delayed the publication last week, a few hours after its Acting Financial Director Yvette Neveling resigned with immediate effect.
The delay was attributed to ‘accounting issues’. No doubt the results will reveal what those are.
Herbst in a written response to Moneyweb after contacting him via e-mail said: “Shareholders need not be concerned about the delay as it is occasioned as a result of practical issues involving completion of the financial statements.”
However, Dobek Pater, telecommunications and market analyst of Africa Analysis says, “when companies delay in releasing results, it usually indicates that management is not happy with the results.”
Pater suggested that Huge’s ‘accounting treatments’ may be related to the impairment of goodwill after mobile operators began cutting whole termination rates – the fees they charge each other to carry calls on their networks.
On the issue of the FD, Herbst, who is currently juggling the post of CEO and acting FD, said the company hopes to make a replacement soon. “Huge Group has been actively looking for a new financial director and hopes to make an announcement in this regard shortly,” said Herbst. It’s still unclear why Neveling resigned but the group did wish her well for the future.
When it releases its results the company expects to report a headline loss per share of 14.5c-15.5c for the year ending February 28 2011, compared to the 8.58c headline earnings per share reported last year.
Herbst said the results would also reveal “a number of new developments worth discussing but it would be prudent to have such discussions after the release of the annual results”.