Monday, December 09,
2019 / 06:55 PM / NSE / Header Image Credit: Leasafric Ghana Limited
C&I Leasing Plc. hereby notifies its esteemed Shareholders, Stakeholders, The Nigerian Stock Exchange ("The Exchange") and the general public, that the Board of the Company has been duly informed of a likely financial error in the Audited Accounts of its Ghana subsidiary, Leasafric Ghana Limited (Leasafric).
Leasafric is a non-bank financial institution incorporated in Ghana in 1992, to carry on the business of finance leasing as Its principal business. C&I Leasing Plc., a group of companies involved in the business of fleet management, outsourcing and marine services, and listed on the Nigerian Stock Exchange (NSE), owns 71% equity stake in Leasafric, and the subsidiary contributes about 10% to the group's financial performance.
The Board of Directors of Leasafric Ghana will meet on Tuesday, 10th December, 2019 to review the matter and will notify all regulators including the Bank of Ghana and carry out a special investigation into the circumstances surrounding the likely errors in the Audited Accounts. While the exact amount in question will be ascertained by the ongoing investigations, we estimate that the write-off of the amount may not have any material impact on the group's net earnings for 2019.
Nevertheless, we assure all the stakeholders and the investing public that C&I Leasing Plc. is resilient and well diversified to cushion any likely impact of the financial error. The company has also begun putting adequate measures in place and strengthening its existing risk controls framework to prevent a recurrence.
It is noteworthy to mention that our detection of this financial error is as a result of the effective implementation of the Company's robust corporate governance framework which is closely monitored by the Board and we remain committed to ensuring the continued full and effective implementation of the framework.
Finally, in spite of the likely impact on our profit target for 2019, we are optimistic that with our exceptional track record in major sectors of the economy, we expect to meet our profit targets for 2020 and beyond.
We therefore do not envisage that this event will have any material negative impact on C&I Leasing Plc.'s on-going rights issue.
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Table: Unaudited Q3 2019 Results