AUTHORITIES at the Nigerian Stock Exchange (NSE) on Tuesday lifted suspension clamped on FTN Cocoa Processors Plc, more than five months after the Exchange disallowed trading in the shares of the agricultural company for breach of corporate governance rules.

The NSE had on July 02, 2019 suspended trading on FTN and 10 other companies for failing to adhere to best corporate governance and extant post-listing requirements that make it mandatory for quoted companies to submit their financial statements within stipulated timelines.

Post-listing rules at the NSE require quoted companies to submit their audited earnings reports, not later than 90 calendar days after the expiration of the period. The rules also require quoted companies to submit interim report not later than 30 calendar days after the end of the relevant period. Not less than 83 per cent of quoted companies use the 12- month Gregorian calendar year as their business year. The business year thus terminates on December 31.

While March 31 is usually the deadline for submission of annual report for companies with Gregorian calendar business year, the deadline for the quarterly report is a month after the quarter.

The NSE stated that the lifting of suspension was due to the submission of outstanding financial statements by FTN.

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According to the Exchange, FTN has filed its audited financial statements for the year ended December 31, 2018 as well as its first, second and third quarter financial statements for 2019. With this, trading resumed yesterday.

Key extracts of the audited report and accounts for the year ended December 31, 2018 showed that the agro-allied company grew its turnover by 636 per cent from N81.82 million in 2017 to N602.11 million in 2018.

However, FTN recorded gross loss of N284 million in 2018 compared with a gross loss of N251 million in 2017. Net loss stood at N569.37 million in 2018 as against N762.42 million in 2017. Loss per share stood at 26 kobo in 2018 as against 35 kobo in 2017. Directors of the company attributed the negative bottom-line to inadequate working capital that has continued to hinder the company's operations.

The board of the company also blamed high cost of production and high finance expense for the negative performance noting that inadequate working capital hindered the company from procuring raw materials needed to facilitate optimum production.

the company had reduced operating expenses, finance costs remained reasonably high at N261.18 million in 2018, although a reduction from N377.92 million recorded in 2017.

© Pakistan Press International, source Asianet-Pakistan