Union Diagnostic and Clinical Services Plc has blamed the implementation of its ERP software as the reason for its late submission of its audited accounts.
It made this know via a notice to the Nigerian Stock Exchange. The statement issued by the Company’s secretary Dr. Iroye Opeyemi Samuel explained that a notification was earlier sent to the public of its inability to file these accounts within the time prescribed by the Rules of The Exchange on the filing of financial statements. It explained this was due to the implementation of an Enterprise Resource Planning Software which has affected its ability to conclude its audit process.
The company claimed it had envisaged that the implementation process will be completed by the end of March 2020 but has now experienced significant delays. It also claimed the COVID-19 pandemic delayed the process from being implemented and it’s expected that this process will be concluded by June 29, 2020.
The company expects the accounts to be ready on June 29, 2020.
Union Diagnostic and Clinical Services Plc apologized for the delay and assured the public that the audited accounts shall ready at the said time.
Union Diagnostic and Clinical Services Plc. (UDCS Plc.) is a leading indigenous and homegrown company in the medical diagnostics and healthcare sector.
The company reported profits of N129 million in 2019 a significant rise from N101 million reported in 2018. Its share price closed at 29 kobo at the close of business on Friday, June 19.
The company has struggled over the years especially in the lucrative lab testing clinical services business. It recently received an offer of N492.75 million from Cedar Advisory Partners which already has a 20% stake in the company.
The acquisition which is priced at 35 kobo per share will see Cedar own 59.66% in Union Diagnostic.
The COVID-19 Pandemic has provided a lifeline for the healthcare companies with several intervention funds earmarked for companies in the sector.