Net1 Shares Plunges Again On Delayed Filing of Restated Quarterly Report

Deloitte directed all question to Net1. “Our professional responsibilities, standards and contractual obligations with respect to client confidentiality prevent us from commenting any further…”

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Stock drop. Gearstd / Shutterstock.com

The shares of South Africa’s controversial JSE-listed Net 1 UEPS Technologies dipped 14.5% at R64 by 15.55 on Wednesday after the company announced it has experienced unexpected delays in the filing of its Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2018.

The Nasdaq and JSE-listed firm informed the United States Securities and Exchange Commission that it expects that it will be able to conclude the remaining work in time to file the Form 10-Q within the five-day extension period.

The company did not inform JSE investors about the delay in publishing restated financials.

For more read: SA’s Net1 Announces Delayed Filing of Restated Quarterly Report

Net1 share movement
Net1 share movement / Moneyweb

Net1, a shareholder in South Africa’s mobile phone firm Cell C, announced on Friday that it will restate its financial earnings for the year ended June 2018 due to an accounting error.

For more read: SA’s Net1 Will Restate FY Earnings; Cites Cell C’s Accounting Error

The company said is in the process of preparing restated financial statements for the year ended June 2018, which the company anticipates filing with the SEC (United States Securities and Exchange Commission) on Form 10-K/A for the year ended June 30, 2018, as soon as practicable.

Net1 UEPS Technologies’ loss of the lucrative contract to distribute billions of rand to social grants recipients and its poor financial reporting on Friday came back to bite the firm, its stock plunging 46%. The share price closed 46.8% lower at R50.54 on the JSE on Friday.

For more read: Net1’s shares plunge 46% on accounting error over Cell C

The group told Business Report its audit committee has discussed the error with its auditors with Deloitte & Touche.

Deloitte directed all question to Net1. “Our professional responsibilities, standards and contractual obligations with respect to client confidentiality prevent us from commenting any further…” Deloitte told Business Report at the weekend.

The shares of Net 1, which is now valued at more than R4.2 billion, has lost 25% in the past 7 days and 31.9% in the past 30 days.

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