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The stock exchange has suspended trading in the shares of bus information company Connexionz Ltd until the company provides its preliminary full year results.
NZX said Connexionz had advised the exchange it was postponing the adoption of new international financial reporting standards (IFRS) for accounting and was preparing accounts compliant with GAAP standards for the preliminary results.
As a result of postponing the adoption of IFRS, Connexionz could no longer take advantage of a 15 day reporting deadline extension granted in an NZX waiver.
NZX said it therefore advised that Connexionz had not issued to NZX preliminary full year announcements for the year ended March 31, which were due to be issued on June 14.
If a company had not issued its preliminary full year announcement within five business days of the due date, the quotation of its securities would be suspended until the results were issued, NZX said.
Yesterday Connexionz said adopting the IFRS standards had turned out to be much more complex than it was first led to believe.
It was also waiting to receive final approval from its British auditors to approve the results of its British subsidiary.
Auditors Deloitte had advised it that producing IFRS compliant accounts by Friday would not be possible, Connexionz said.
It had taken the view that postponing the adoption of IFRS and producing New Zealand GAAP compliant accounts would result in providing financial reports to the market in the shortest timeframe.
It would be working closely with Deloitte to produce a preliminary announcement by July 13.
In April Connexionz had said unexpected delays in signing up prospective British clients and in securing regulatory approval for an additional radio channel required for its Maryland University deployment meant that the company's results for the year to March 31 would be below expectations.
In December, Connexionz had expected to achieve a break even result for the second half of the financial year.
At the time of the April announcement, Connexionz chairman Craig Boyce said the business was one in which there was considerable uncertainty as to when contracts would be signed.
That made projecting future sales a challenging task.
The delays meant that some sales originally expected in the March year were likely to be recognised in the accounts for the next financial period.
Shares in Connexionz last traded on Wednesday at 25c, the lowest level in the past year during which they had peaked at 38c.
- NZPA
