New Zimbabwe.com

Hippo Valley Estates faces ZSE delisting after failing to declare financial results

By Alois Vinga


HIPPO Valley Estates is left with less than a week to declare financial results or risk being removed from the Zimbabwe Stock Exchange (ZSE).

In a recent announcement, ZSE chief executive Justin Bgoni said that if the company did not declare its results within a week, steps to suspend the firm will be taken.

“Hippo was informed of the breach and directed to publish their audited financial statements on or before Monday 19 August 2019 as a corrective measure. ZSE shall commence steps to unilaterally suspend trading in Hippo’s securities if Hippo fails to comply with this directive,” he said.

ZSE said that Hippo Valley Estates Limited failed to publish its audited financial statements for the year ended 31 March 2019, on 14 August 2019, as previously communicated to the issuer’s shareholders by a “Notice to Shareholders” dated 31 July 2019. By copy of a letter dated 14 2019.

However, Hippo requested for a further extension to delay the publication of its audited financial statements to 31 October 2019 which was not granted.

“This was Hippo’s third request for an indulgence to delay the publication of audited financial statements for the financial period under review which were due for publication by 30 June 2019. Hippo has been notified of a penalty of a fine of ZWL$5,000 against them under the provisions of Clause 26.1,” Bgoni said.

Consequently, investors dealing in Hippo securities are advised to trade with caution and to seek expert advice where necessary.

Hippo Valley and Triangle Estates’ Johannesburg Stock Exchange (JSE) listed parent Tongaat Hulett requested the suspension of its listing.

According to a shareholder notice issued in June, the company’s listing on both the JSE and the London Stock Exchange was suspended.

This decision by the board came following a delay in the publication of the company’s financial results. Shareholders were advised on May 31, 2019, that the financial results for March 31, 2018, cannot be relied upon and will be restated. This has had implications for the reliance of the interim results for the period ended September 30, 2018, and the full 12 months ended March 31, 2019.