Several property-focused companies face upheaval in their reporting schedules after the UK financial services watchdog asked listed firms to delay publishing their results so as to give a clearer picture of the effect of the coronavirus on their businesses.
The Financial Conduct Authority has written to companies planning to publish preliminary financial results in the coming days, asking them to delay publication. It said: “The FCA strongly requests all listed companies observe a moratorium on the publication of preliminary financial statements for at least two weeks.”
The spread of Covid-19 has caused “unprecedented practical challenges” for companies and auditors, the FCA said, and issuing preliminary financial statements in advance of audited statements “is adding unnecessarily to the pressure on companies and the audit profession at this moment”.
The Financial Reporting Council followed the FCA’s announcement by saying it “encourages listed companies and their auditors to consider carefully whether they should delay other corporate reports for the next two weeks, such as interim financial statements and final audited financial statements, except where necessary to meet a legal or regulatory requirement”.
Companies due to report audited or preliminary full-year results in the coming two weeks include Impact Healthcare REIT, Regional REIT, Henry Boot and Property Franchise Group. Proptech firm Essensys, which is listed on AIM – not covered by the FCA’s announcement – is due to report interim results.
The watchdog added: “The unprecedented events of the last couple of weeks mean that the basis on which companies are reporting and planning is changing rapidly. It is important that due consideration is given by companies to these events in preparing their disclosures. Observing timetables set before this crisis arose may not give companies the necessary time to do this.”
Companies have rushed to advisers in order to work out whether they can or should still publish results, according to several market sources, and many are engaging with the FCA directly in order to ascertain whether the recommendation covers their own scheduled announcement.
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