Marketing services firm WPP Scangroup #ticker: SCAN has sought approval from the Capital Markets Authority (CMA) to delay the release of its annual results for a second time while it continues the investigation of its former executives.
The company was required to announce its performance for the year ended December by April 30. It asked the regulator explaining the cause of the delay and stating that it would publish the results before May 31.
He missed his new self-imposed deadline and now says he hopes to release the results on July 31.
“The Authority remains in contact with the company and, as expected, the external auditors need time to assess the impact of these developments on their opinion in relation to the financial statements before they can be published,” said CMA in a statement.
“Therefore, the company has requested an extension that is being considered by the Authority.”
Investigations that could affect the results indicate that the removal of company executives, former CEO Bharat Thakrar and CFO Satyabrata Das, was due to financial misconduct.
The two former executives resigned after being suspended by the company’s board of directors.
Thakrar was the first CEO of an NSE-listed company to be publicly suspended or fired for ethical misconduct. Most companies have chosen not to disclose the reasons for the sudden departure of their leaders.
Thakrar has been the face of Scangroup, which went public on August 29, 2006 in an initial public offering (IPO) that raised Sh94 million.
He was the main shareholder at the time with a 28.53 percent stake and his stakes were valued at one time at more than Sh1 billion. His property now has a market value of approximately Sh260 million. He sold his shares over the years, helping his ownership drop to 10.6 percent today.
UK-based conglomerate WPP, on the other hand, raised its stake in the company to 56.3 percent control through a combination of share purchases and the addition of some of its subsidiaries to Scangroup.