Extension due to continued impact of COVID-19 on listed companies

The Jamaica Stock Exchange (JSE) has given listed companies with audited financial statements due today a 45-day reprieve.

The 45-day extension, which was announced yesterday by JSE Managing Director Marlene Street Forrest, comes in light of the continued impact of the COVID-19 pandemic on the operations of listed companies.

In addition to granting the extension, Street Forrest is reminding listed companies that, in order to access this extension, they are required to provide a notice concerning the circumstances and probable extent of the delay to the JSE, Jamaica’s equities market regulator.

This requirement is in accordance with the rules of the JSE.

Listed companies are also required to simultaneously place an advertisement in the print media advising shareholders of the delay and to comply with the general restrictions on dealings during this period.

Street Forrest said that, in addition to placing an advertisement in the print media, listed companies are being encouraged by the JSE to also consider posting their delay notice through other channels.

This suggestion is in an effort to ensure the dissemination of information to the wider public.

For further guidance in treating with delays, the JSE advised listed companies to refer to JSE Main Market Rule 408 – Audited Annual Financial Statements and JSE Appendix 7, Section 4 – General Restrictions on Dealings.

As it relates to the Junior Market, listed companies listed on this trading platform may reference JSE Junior Market Rule Appendix 2, Part 4 (2) – Audited Annual Financial Statements and JSE Junior Market Rule Appendix 2, Part 8, Section 4 – General Restrictions on Dealings.

In the last few days, several companies have posted notices on the JSE website indicating that they will be late in filing their quarterly audited financial statements, due today. 

Delays in filing quarterly financial statements due today

The latest companies to post such a notice yesterday were IronRock Insurance Company Limited and MPC Caribbean Clean Energy Limited.

IronRock Insurance has advised that its audited financial statements for the year ended December 31, 2020, will be submitted late, due to unexpected and unforeseen delays in the completion of the audit, arising from the impact of COVID-19 on available resources.

IronRock Insurance anticipates that the audited financial statements will be submitted on or before April 14, 2021. The insurance company further advised that an advertisement will be placed in a national newspaper in daily circulation, advising its shareholders of the delay.

MPC Caribbean Clean Energy reported to the JSE that its interim financial statements for the period ended December 31, 2020, and the audited financial statements for the financial year ended December 31, 2020, have been delayed longer than expected.

In a posting published on the JSE website, MPC Caribbean Clean Energy reports that, “as previously communicated, as a result of the tariff changes affecting one of the investee companies, the investment company is currently reviewing the commercial impact on revenues and overall asset value. Therefore, the publication of the interim financial statements for the year ended December 31st, 2020 and the audited financial statements for the financial year ended December 31, 2020 will be delayed with the expected submission date 30th April 2021”.

On Monday, the Jamaica Public Service Company Limited (JPS) advised that its audited financial statements for the year ended December 31, 2020 will be submitted late. This as a result of unexpected and unforeseen delays in the completion of the audit arising from the impact of COVID-19 on available resources.

JPS reported that it anticipates that its audited financial statements will be submitted on or before April 15, 2021. Further, the light and power company advised that it would be placing an advertisement in a national newspaper in daily circulation advising its shareholders of the delay.

Last week KLE Group Limited reported that it will not be in a position to submit its audited financial statement for the year ended December 31, 2020, due to delays in the audit process brought on by the pandemic.

“The completion of its audited financials has been further delayed and it is anticipated the said financials will be submitted by or before April 19, 2021,” advised KLE. 

KLE stated that an advertisement would have been placed in a national newspaper in daily circulation advising shareholders of the delay.