Smart Products works against intense NSE sanctions
…Releases Q1 2016 result which reflects 70% drop in PAT
Smarts Products Plc has shown through its first quarter result for the period ended 31 March 2016, the challenging impact of macroeconomic environment as its profit and loss lines remained depressed.
The company’s result, released by the Nigerian Stock Exchange (NSE) showed that key performance measuring indices declined remarkably, as profit before tax dropped by about 75 per cent. The result showed that Profit for the period after tax dropped to N5,210 ,562 from N16,657,464 recorded in the 2015 financial year.
According to the result, revenue dropped by 75 per cent to N11, 075,140, which was against N45, 190,169 recorded as revenue in as at the close of the 2015 financial year on 31st December.
Personnel and other operating expenses soared by the same margin of 75 per cent, while Personnel expenses closed the first quarter 2016 at N1,837,300 against N5,971,814 posted on 31 December 2015, Other operating expenses which stood at (23,818,746) as at the close of business 31 December 2015, closed at N5,285,080 in first quarter 2016.
Total comprehensive income for the period stood at N5, 210, 562 from N16, 893,307 recorded 31 December 2015. There were no income tax expenses at the period under review against N8, 323,112 expended on income tax in the 2015 financial year.
The Nigerian Stock Exchange (NSE) on 12th April 2017 announced failure by 11 listed firms to meet up with the deadline of filing their Audited Financial Statements (AFS) for the year ended December 31, 2016. The building construction company, Smart Products Nigeria Plc featured prominently among the defaulting companies.
However, the company cannot release the 2016 audited financial statements without first publishing periodic results that made up the 2016 en of year result.
Accordingly, investors have been warned to trade with caution on the securities of these companies in light of the absence of up to date financial information on them, given that such information are required to make good investment decisions.
The NSE said the above listed companies’ Audited financial statements (AFS) became due on Friday, March 31st, noting that by failing to file their AFS by the due date, the companies, including Smart Products Plc, violated “rule 1.1.4, rules for filing of accounts and treatment of default filing, rulebook of the Exchange (Issuers’ Rules).”
The rule requires listed companies to file their AFS with the Exchange not later than 90 calendar days after the relevant year ended, and may face sanctions subsequently.
“Further, Rule 1.1.4 requires that the AFS must be published in at least two national daily newspapers not later than 21 calendar days before the date of the Annual General Meeting, and posted on the company’s website, with the web address disclosed in the newspaper publications.
