Kayode Tokede
Caverton Offshore Support Group Plc has experienced a decline in its stock price to N2.68 per share after announcing inconsistencies in its unaudited half-year 2024 results. Investors have taken the opportunity to capitalize on profits, causing a negative impact on the support and logistics company’s stock quoted on the Nigerian Exchange Limited (NGX).
Due to profit-taking, Caverton Offshore Support Group’s stock price, along with other stocks, became top losers on the Exchange. It dropped by 27.37% to N1.01 per share from its initial trading price of N3.69 per share.
The stock price had reached N4.05 per share last week but experienced a sharp decline to N2.68 per share upon the filing of the news regarding the discrepancies in the H1 2024 results on the Exchange.
The company reported a loss of N3.7 billion in H1 2024, a significant increase from N258.64 million in H1 2023. During the same period, the net finance cost amounted to N4.8 billion compared to N763.22 million reported in the corresponding period of 2023.
Furthermore, the revenue for H1 2024 stood at N18.8 billion, reflecting a growth of 41.5% compared to N13.3 billion reported in H1 2023.
Capital market analysts have expressed disappointment as investors were expecting improved performance in the first quarter of 2024 but were instead met with a loss declaration by the company. In addition to this, investors have raised concerns regarding the discrepancies found in the unaudited H1 2024 results and accounts, urging regulatory bodies to initiate an investigation.
Caverton Offshore Support Group’s Company Secretary/Legal Adviser, Amaka Obiora, issued a statement explaining that the management had discovered discrepancies in the unaudited H1 2024 financial statements, specifically related to the inaccurate reporting of incurred losses. Obiora apologized on behalf of the company, stressing that the issue arose due to a formatting error in the preparation of the financials. She assured the Nigerian Exchange Limited (NGX) and the investing public that the company had no intention of misleading or deceiving the market.