Technology

JSE threatens threatens to de-list Blue Label over financial results delay

JSE threatens threatens to de-list Blue Label over financial results delay

The JSE on Tuesday threatened to suspend Blue Label Telecoms shares as the company has failed to release its provisional financial results as required.

The company in August advised that its basic, headline and core headline earnings per share for the year ended May 31, 2019 were expected to dip by more than 20% in comparison to the previous period. But the company, which holds a 45% stake in Cell C, has not yet issued its financial statements.

The failure has prompted a warning from the JSE that its "securities is under threat of suspension and possible removal". 

The JSE said if Blue Label "still fails to submit its provisional report on or before September 30, 2019, then its listing may be suspended" as stipulated in the Listings Requirements.

The company immediately responded with an assurance that it would be releasing its annual results on September 26.

"As detailed in our SENS notification of August 19, 2019, Blue Label confirms that it will be releasing its annual result for the financial year ending May 31, 2019 on Thursday, September 26, 2019," the company said in a brief announcement.

Blue Label said earlier in August that it was in the process of determining the value of its investment in Cell C. 

In a separate development, S&P in August announced that it had slashed Cell C's credit rating to D, after it failed to make interest payments due in July. The company is struggling to service an almost R9bn debt load. 

Blue Label shares closed at R2.85 on Tuesday, down 1.04%, after opening at R2.76.