Jamaica Stock Exchange has suspended trading in EduFocal’s ordinary shares. (Photo: Joseph Wellington)
EduFocal Limited’s ordinary shares have been suspended from trading for the second time in over a year related to the delay in submitting its audited financial statements.
The education technology company was suspended from trading effective June 3 pending the submission of its 2024 audited financials, which are 93 days overdue.
The audited numbers were due from March 1.
EduFocal has indicated that it intends to submit its audited financials by June 27 and the annual report within 30 days of that submission. The company also expects to submit its first quarter report by June 5.
The company was suspended for 17 days during June 2024 due to its audited financials being more than 90 days past the original due date.
The company indicated in late December that it would be moving to change its filing period related to its financial year in 2025. That would see the company producing an unaudited fourth quarter report in 45 days and audited financial statements in 90 days from the financial year end.
EduFocal published an unaudited fourth quarter (October to December) report on February 25 as part of its enhanced transparency mandate. That report revealed that Q4 revenue was cut by a quarter from $19.69 million to $14.86 million, but the operating loss improved from $136.23 million to $595,464. After accounting for finance costs and taxes, the Q4 consolidated net loss moved from $138.21 million to $13.20 million.
For the overall 2024 period, EduFocal’s revenue decreased by 63 per cent from $263.54 million to $97.17 million. The company’s operating loss dipped from $59.26 million to $21.58 million while the consolidated net loss improved from $79.48 million to $57.97 million.
EduFocal’s asset base grew five per cent to $233.32 million with the company investing into the development of Quizzitive (formerly Amigo), which is a platform that offers curated questions by educators. However, the company’s total liabilities increased 24 per cent to $362.49 million with the consolidated deficit at $129.17 million.
“EduFocal’s 2024 performance reflects the ongoing challenges we’ve faced in a difficult market environment. Despite the setbacks, we have made meaningful progress in repositioning the business for future growth. By focusing on revenue diversification, operational efficiency, and technology enhancements, we are setting the foundation for a more resilient business model. While the path to recovery will be gradual, we are confident that the steps we’ve taken in 2024 will drive meaningful improvements in the years to come,” stated the Q4 report signed by Chairman Peter Levy and Chief Executive Officer Gordon Swaby.
EduFocal last traded at $0.22 which left the stock down 40 per cent in 2025 with a market capitalisation of $139.94 million.
Once EduFocal submits its audited financials and there are no other breaches of Jamaica Stock Exchange (JSE) rules, the company’s stock can be readmitted to trading.
Other firms struggling to complete audits
Other companies, like Kintyre Holdings (JA) Limited (formerly iCreate Limited); Consolidated Bakeries (Jamaica) Limited, trading as Purity; and Productive Business Solutions Limited (PBS) all have outstanding audited financials for the 2024 financial year. However, these firms have not been suspended due to their choice to file their unaudited Q4 in 45 days and audited financials in 90 days.
Kintyre Holdings indicated that it expects to publish its audited financials by June 11, PBS should file by June 16, and Purity should file by July 1. If Purity doesn’t submit its audited financials by July 1, the JSE could consider suspension in the trading of its ordinary shares.
The on-time submission of audited financial statements to the JSE has considerably dropped over the last five years. The JSE’s 2024 annual report revealed that the timely filing of audited financial statements by Main Market companies has moved from 85 per cent in 2020 to 64 per cent in 2024. The statistics for Junior Market companies shows that the timely submission has moved from 92 per cent in 2020 to 43 per cent in 2024.
Companies like FosRich Company Limited, Pulse Investments Limited, and Caribbean Cream Limited, trading as Kremi, have submitted their audited financial statements in the last year on the day or days before the JSE could move to suspend trading of the ordinary shares.
EquityLine Mortgage Investment Corporation, EduFocal Limited, IronRock Insurance Company Limited, PBS, and MFS Capital Partners Limited were all suspended in 2024 for the late submission of their audited financials.
The JSE’s Regulatory & Market Oversight Committee (RMOC) initiated an analysis through the Regulatory Market & Oversight Division (RMOD) during 2024 to understand the reasons for the continued delay in audited financial statements submission. The reasons included a delay in the commencement of the audit process, a shortage of qualified accountants and audit professionals, increased audit complexity due to evolving accounting standards, and large or complex transactions which require additional scrutiny.
“The RMOD remains committed to working collaboratively with external stakeholders to identify practical solutions that uphold the integrity of the financial reporting process. Our goal is to ensure that regulatory requirements remain both achievable and proportionate. We aim to strike a balance between investor protection and market development, while fostering a regulatory environment that is responsive to emerging risks and systemic constraints,” the JSE 2024 annual report stated.
