Home REIT has delayed the release of its full year results as it undergoes an enhanced audit following a short-seller attack.
The company had been due to announce results for the period to 31 August 2022 this morning, but it says that in the wake of the allegations made by short-seller Viceroy Research last week the company is subject to an enhanced set of audit procedures.
The group has yet to make a substantive response to the allegation, which we talked about on our weekly show, but says it will in the “coming days”.
The company said in an RNS statement: “The company’s results were on target to be published on 28 November 2022, as previously announced, having been audited by BDO LLP. It is standard practice that, should material allegations be made against a company undergoing an audit, then such company is subjected to an enhanced set of audit procedures.
“Given the publication of the report on the company published by Viceroy Research LLP, as announced on 23 November, the company is therefore required to delay publication of its results while BDO completes this verification exercise.
“In addition, the company intends to publish its full response to Viceroy’s claims in the coming days.”
Home REIT’s share price has fallen a further 7% this morning, having fallen 23% last week.
Marlene Wood, chair of Home REIT’s audit committee, commented: “As directors and shareholders, we share investors’ frustration at the delay of the company’s full year results due to the actions of Viceroy. It is important that the company continues to adhere to the highest standards of financial reporting and we welcome the additional verification process currently being undertaken by BDO.”
HOME : Home REIT delays results as it undergoes enhanced audit