NSE indicts, sanctions Union Diagnostic over misleading report

In from Success Allantee . . .
The Nigerian Stock Exchange has indicted and sanctioned Union Diagnostic & Clinical Services Plc, an indigenous medical diagnostics company, over what a source described as material misinformation of the investing public.
According to the source, Union Diagnostic was directed to pay monetary fines for “filling misleading and incomplete information” as well as for engaging other corporate activities in surreptitious ways without informing the Exchange.
The source told Ripples.com.ng that the fines might not be unconnected with the half-year report and the controversial interim dividend that the company declared.
The management of Union Diagnostic had in August 2015 initially announced an interim dividend but turned round to withdraw the interim dividend after dealers had traded on the basis of the dividend recommendation.
Union Diagnostic was the first public liability diagnostic firm in Nigeria as well as the first in its field to be quoted on the Nigerian Stock Exchange (NSE).
The withdrawn dividend recommendation was part of the highlights of the first half report of the company. Union Diagnostic had reported that turnover rose to N623.43 million in first half of 2015 as against N517.73 million in 2014.
Gross profit was reported to have risen from N255.35 million to N329.47 million. Profit before tax stood at N113.16 million in 2015 as against N47.49 million in 2014 while profit after tax increased from N41.94 million in first half 2014 to N105.99 million in first half 2015.

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