AYO Technology. File Photo: African News Agency (ANA)
AYO Technology. File Photo: African News Agency (ANA)

AYO - Results of agreed upon procedures

By AYO Statement Time of article published Jun 4, 2019

Share this article:

DURING the PIC Commission of Inquiry into impropriety at the Public Investment Corporation (PIC) in April this year, accusations were made against AYO Technology Solutions Limited (AYO), wherein it was alleged that the company had materially inflated the profits of its unaudited interim results. 

These claims formed part of the testimony and cross-examination (under oath) of AYO former employees, Kevin Hardy and Siphiwe Nodwele, which have now been refuted.

As a result of these public assertions, the Johannesburg Stock Exchange (JSE) requested AYO undergo a factual findings review of the allegations. Although the request by the JSE was highly unusual, given these were unaudited interim results and which were in fact, supported by published audited August 2018 results, AYO can confirm it fully co-operated with the JSE and with auditors BDO South Africa, who conducted the engagement in terms of International Standard on Related Services (“ISRS”) 4400: Engagements to Perform Agreed-Upon Procedures Regarding Financial Information.

The company’s new management and board of directors have also reviewed the findings of the report and have identified certain corrections, which require the restatement of the February 28, 2018, interim results.

AYO can, however, confirm that profit before tax remains flat and that earnings per share and headline earnings per share, increased by approximately 2 percent.

As a result of the re-computation of tax however, profit after tax decreased.

AYO concedes that a full audit of its interim accounts will provide more comfort to the JSE and the public and have accordingly, engaged their auditors to commence with an audit of the February 2018 interim results.

AYO is confident that all material discrepancies between the published accounts and this restated version of the interim accounts, will ensure a more than satisfactory level of accuracy of the financial position of AYO as at February 28, 2018.

AYO’s position is supported by the fact that the corrections identified in the BDO report have not impacted on the accuracy of the published audited financial statements of August 31, 2018.

AYO has indicated to the JSE the steps it has taken, and will be taking, to ensure any potential breaches are dealt with. The executives that were involved at the time of these interim results have left the business and all the necessary changes to all boards and internal mechanisms have been tightened and the team has been augmented with the requisite professionals.

AYO thanks the market for its patience in this matter. 

Statement issued by AYO


Share this article:

Related Articles