THE stocks of multinational investment firm Cambria Africa have been suspended from the London Stock Exchange (AIM) since March, raising questions about the management and board’s competence.
The company, whose investments in Zimbabwe include the Payserv Group and Millchem, was suspended from the London bourse for failing to provide audited results for the year ended August 31, 2022 as trading regulations requirements.
This was not the first time for the company’s securities to be suspended on the London bourse for failing to publish audited results.
It was previously suspended on June 1, 2021.
Renowned economist Vince Musewe said failure by the board and management to publish audited results cast doubt on their competence.
“When a company gets suspended on the stock exchange, it cannot raise further capital nor can investors trade in its stocks,” he told NewsDay Business.
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“This means those who hold the shares are stuck with them. Also the value tends to fall as people lose confidence in the company. It increases the company’s reputational risk and drives away business.
“It’s not a good thing to happen and creates doubt in the competence of management and board. To recover from this is a mammoth task that will cost both in time and money.”
Cambria told shareholders on February 20, 2023, that it would not be able to comply with Rule 19 of the AIM rules for Companies, which calls for mandatory release of audited accounts for the fiscal year.
Meanwhile, the firm revealed in February that management was actively working to maximise and realise net asset value per share and to get the share price as near to that figure as possible.
“In this respect, the company remains on track with respect to proposed realisations of asset values at the holding level including share sale of Lonzim Enterprises UK for US$1,7 million,” it said.
The multinational investment company declared that it would maximise the value of the United States dollar for the deposit of $1,3 million, which was reduced to US$2 000 at the Reserve Bank of Zimbabwe in order to settle obligations owed by its subsidiaries in Zimbabwe.
Along with adding value to the intellectual property owned by Payserv Africa and Tradanet, it also aims to generate cash from the sale or leasing of the commercial space used by Paynet Zimbabwe.
The company claimed that it was on track to reduce interest expenditure and overhead costs to nearly non-material levels, as well as to achieve a minimum return of 3% on capital held in Mauritius by Payserv Africa.
The Payserv Group is the country’s leading provider of payments and business process outsourcing services targeted at financial and related sectors.
The group comprises four business units, Paynet Zimbabwe, AutoPay, Loanserv and Softserv. Millchem is among Zimbabwe’s leading distributors of industrial solvents and metal treatment products.