ECO Animal Health Group plc (LON:ECO) previously announced that the Company intended to publish its audited Annual Report and Accounts for the year ended 31 March 2020 prior to 31 December 2020.
Audit progress has been good but continuing difficulties associated with remotely auditing the Company’s International operations and the need to audit the previously announced prior year adjustments during a period of COVID-19 restrictions has added substantial logistical challenges to the task. The prior year adjustments had the effect of reducing profitability (and therefore audit materiality) in the year ended 31 March 2019 resulting in BDO, as new auditors, needing to perform verification of the opening balance sheet at 31 March 2019 which required the presentation of manual records in some cases dating back more than ten years. As a result, the Board of Directors having consulted with the Company’s auditors, BDO, is deeply disappointed to advise that the final audit procedures and publication of Annual Report will not be completed by 31st December 2020. Accordingly, the Company’s securities will be temporarily suspended from trading from 7.30am on 4 January 2020 until the publication of the Annual Report.
Following further consultation with the Group’s auditors the Directors believe that the Annual Report will now be published during January 2021 and the Interim Report for the six months ended 30 September 2020 will be published as soon as possible thereafter, during January 2021.
On 21 October 2020, the Board announced a trading update, noting that the revenue in the six months ended 30 September 2020 would be significantly ahead of management’s expectations and the same period for the prior year and this was re-affirmed on 24 November 2020. The Group confirms, as previously announced, that the strong trading has continued during November and the Board of Directors is confident of meeting market expectations for the full year to 31 March 2021.
Chris Wilks, ECO Animal Health Group CFO said: “The vastly enhanced scope of our FY2020 audit and the nature of our global operations has made completing the audit work in pandemic conditions exceptionally challenging. We thank our shareholders for their patience and continue to work as thoroughly and quickly as possible to enable BDO to finish their work and allow us to publish our results. We are, however, pleased that current trading remains strong and the Board views the future with continued optimism.”
