RE: The great GSTichup30 Jul 2025 07:32
Yes, a listed company is generally expected to announce any delay in releasing its end-of-year results in advance. This is usually done through a regulatory announcement to the relevant stock exchange, such as the London Stock Exchange, and is considered a best practice to avoid misleading the market.
Here's why and what the process usually entails:
Why prior notice is needed:
Transparency and Market Confidence:
Publicly traded companies are obligated to provide timely and accurate financial information to the market. Late announcements can create uncertainty and erode investor confidence.
Regulatory Requirements:
Stock exchanges and regulatory bodies like the Financial Conduct Authority (FCA) (FCA) in the UK, have rules about timely disclosure of financial information.
Preventing Insider Dealing:
Late announcements can create opportunities for insider trading if some parties have access to information before the official release.
How the process typically works:
1. Identify the delay:
If a company anticipates a delay in publishing its end-of-year results, it should promptly assess the situation and the reasons for the delay.
2. Consult with auditors:
The company should discuss the delay with its auditors to ensure they are aware of the situation and to understand any implications for the audit report.
3. Issue an announcement:
The company should issue an announcement to the relevant stock exchange (e.g., the London Stock Exchange) as soon as possible, explaining the reasons for the delay and the expected new date for the release of the results.
4. Consider a holding announcement:
If the delay is due to a significant and unexpected event, and there's a risk that inside information may leak, the company may need to issue a holding announcement clarifying the situation and providing some initial information.
5. Document the process:
The company should document all decisions and communications regarding the delay, including the reasons for the delay, the consultation with auditors, and the announcement made to the market.
6. Comply with regulations:
The company must ensure that the delay does not violate any regulatory requirements or market abuse rules.
7. Provide regular updates:
If the new date for the results is not yet known, the company should provide regular updates to the market on the progress of finalizing the results.
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