Final countdown for Huge Group
Should the Huge Group, a telecoms company, fail to publish it annual results for 2010 before the end of June, the company could be suspended from the JSE. The telecoms company has failed to meet both the JSE and its own deadline to release its full year results.
On Tuesday, the JSE issued a Sens announcement informing shareholders that Huge together with Capricorn Investment Holdings and Pinnacle Point Group were going to be given a two week grace period to release their annual results.
“The companies have failed to submit their provisional reports timeously and that the listings of the companies’ securities are under threat of suspension and possible termination. Should the companies still fail to submit their provisional reports by June 30 2011 their listings will be suspended,” said the Sens announcement issued by the JSE.
Huge Group originally missed the JSE’s May 31 results issue date. The company then went on to issue a self-imposed deadline of June 13, but failed to meet this one as well.
Further probing by Moneyweb to establish why the results were not released last week Monday, led to CEO James Herbst confirming that the results need to be finalised by the auditors.
“The company’s trading update will first have to undergo a quality control process by auditing firm KPMG. The process can take anything between one to three days, as a further audit process still needs to be completed on the drafted financial statement[s],” added Herbst.
It appears that the JSE was not aware of the “self-imposed June 13” deadline by Huge Group. Andre Visser GM of Issuer Services at the JSE said “We do not have a copy of this announcement.”
Visser added that the JSE was not aware of when the stakeholders could expect Huge Groups results to be released; only reiterating the fact that the company could be suspended from July 1.
It’s still unclear whether or not Huge could face some harsh penalties with regards to informing the public and Moneyweb of the June 13 announcement.
Huge hounded by problems
This is not the first time that Huge has failed to publish its results on time. In 2009, it didn’t publish its interim results to August 31 2009 on time, prompting censure from the JSE. The company also recently had its acting FD Yvette Nevelling resign with immediate effect on the very same day that the initial results delay was released.
Herbst, who has occupied the role of both CEO and acting FD since Nevelling’s resignation has previously told Moneyweb the vacant position, may be filled soon.
“We have identified a candidate with whom we have been engaging with for between five to six months. The mechanics [of] hiring a new employee need to be followed and the appointment will be made before the end of June so as to allow the candidate to assume their position on the 1st of August,” said Herbst.
The CEO declined to divulge the identity of the candidate.
Source: Moneyweb
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