Rebosis delays FY ends in hope of an unqualified audit

Micro-cap Rebosis Property Fund has delayed the discharge of its reviewed 2020 annual outcomes to the tip of August, which have been meant to be printed on Monday (November 30).

The group, which is majority managed by Japanese Cape- born property magnate Sisa Ngebulana, famous in a JSE Sens statement that the delay pertains to the certified audit opinion expressed by its auditors (BDO South Africa Integrated) for the yr ended August 31, 2019.

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“The auditors’ technical workforce has now recognized that Rebosis requires restatement to the 2019 monetary yr data, particularly referring to the assertion of complete earnings of the corporate,” the fund mentioned.

Learn: R114m puts Ngebulana back on top as largest Rebosis shareholder

“The corporate [Rebosis] believes that performing this required restatement will permit for an unqualified audit opinion to be issued by the auditors for the reviewed [2020] outcomes,” it added.

Rebosis now expects to launch its outcomes later this week “to on or about Thursday, 03 December 2020”.

The most recent debacle raises additional purple flags across the group and whether or not it should retain its Actual Property Funding Belief (Reit) standing following not paying out a dividend to shareholders final yr. It comes only a week after the group announced the resignation of its chief funding officer Rob Becker.

Learn: Rebosis expects to retain Reit status, despite paying no dividend

“The delay is because of a notification offered by the audit associate from BDO South Africa Integrated… an hour earlier than the supposed launch time on a matter recognized by the auditors’ technical workforce,” Rebosis identified in its Sens assertion.

“It should be famous that each one facets of the audit to facilitate an opinion and the outcomes being reviewed have been accomplished by that stage,” the fund added.

Rebosis’s share value fell 12% on the information on Monday (closing at 22 cents a share), however this equated to simply three cents a share decrease on the day.

The group has misplaced greater than 40% of its market cap during the last yr and nearly 98% over the previous three years. It’s now valued at just below R154 million.