The Nigerian Stock Exchange at the weekend suspended trading in the shares of R.T. Briscoe Plc, Standard Alliance Insurance Plc and Cornerstone Insurance Plc for their non-compliance with the Exchange rules and regulations.
Full suspension means there will be no trading in the company’s shares, and their share prices will be frozen.
Others listed companies placed on full suspension are STACO Insurance Plc, Universal Insurance Company Plc and Veritas Kapital Assurance Plc.
According to the NSE, the suspension of the companies will only be lifted upon the submission of the relevant accounts and provided The Exchange is satisfied that the accounts comply with all applicable rules of The Exchange.
Some of the suspended firms, the NSE noted, are perennial offenders as African Alliance Insurance was in 2017 fined N46.1million and in July 2013, the company was also fined for late submission of their audited results.
The non-release of their results is a sign that some of the companies are struggling. Most recent results by R.T Briscoe for the nine months ended September 2017 show the firm made a loss after tax of N1.7 billion.
The company also has negative-retained earnings of N8.5 billion and negative cash flow. In essence, it is surviving on bank loans.
African Alliance Insurance ‘s most recent results for the nine months ended September 2017 show it made a loss after tax of N2.1 billion and negative retained earnings of N24.8 billion.
Universal Insurance, a sister company to African Alliance, has also performed poorly. The company made a loss after tax of N237 million for the half year ended June 2017. Universal also has negative-retained earnings of N2.9 billion as at June 2017.
