Temporary shares’ suspension sought
The group announced last week that the release of its preliminary statement of annual financial results for 2004 had been delayed for reasons outside its control. It said this was due to a delay in receiving results from associate firm Monaghan Middlebrook Mushrooms, which are required to permit Donegal to collate its consolidated results. Monaghan has indicated that its results should be available in May and, consequently, Donegal expects to be in a position to release its preliminary statement before the end of the month.
Donegal said the listing rules of the stock exchange state that the group’s results should have been released by April 30, 2005, and that this requirement has not been met for the reasons outlined in the announcement of April 26.
Donegal said it had decided it was in the best interests of its shareholders, and to ensure an orderly market at all times in the company’s shares, to request that the exchange temporarily suspends its shares from the official list from yesterday until such time as the 2004 results have been released.
The board reiterated its confidence that the results for the year ended December 31 2004 will be in line with market expectations.
Monaghan has already informed the board of Donegal that the reason for the delay in finalising its 2003 results arises from issues associated with the financial statements of Carbury Mushrooms.
Donegal held a 52.5% stake in Carbury, which was merged with Monaghan during 2004. Following the merger, Donegal holds 23% of Monaghan. The issues at Carbury include the write-off of a bad debt.
