SEC ORDERS EVANS MEDICAL TO EXPLAIN N490M LOSS

The Securities and Exchange Commission has directed Evans Medical Plc to issue a press statement on its N490m loss arising from unsupported inventory balance in its 2008 annual accounts, and to also notify the Nigerian Stock Exchange and its dealing members.

The commission gave this directive at a meeting with the company's directors at the SEC's headquarter in Abuja, following its failure to file the 2008 annual accounts on schedule.

In a statement signed by SEC's spokesman, Mr. Lanre Oloyi, the board, at the meeting with the commission outlined the steps it had taken as a result of this development, which included the engagement of Price Waterhouse Coopers, Ghana, to carry out a forensic review of the company's books.

The company said it had appointed an acting managing director while the substantive MD and executive director, finance were asked to proceed on compulsory leave, pending the conclusion of the forensic review exercise.

The statement added that the commission had directed the company to submit the list of its direct and indirect shareholdings of the board members, key officers and their related parties from January 1, 2008 till date.

Evans Medical had since notified the NSE and submitted its shareholding status to the commission in addition to the final report of the forensic review, which is currently being reviewed by the commission.

The company in its audited result for the year ended December 31, 2008 recorded a turnover of N4.5bn, representing an increase of 41.7 per cent or N1.314bn from N3.2bn in 2007.

The company, however, posted a loss after tax and exceptional items of N510.1m, as against N317.02m in 2007.