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Jessica Fino 15 May 2017 11:57am

Toshiba misses annual deadline for financial results

The troubled electronics giant has missed the deadline to file its financial results for 2016 and warned it is likely to face a net loss of 950bn yen (£6.5bn) for the year

The company said on Monday it was still closing its financial results and PwC was still auditing the figures, 45 days after the end of the financial year.

The results were expected to be published in mid-May, but Toshiba said it would “promptly” announce the final business results “once it sees prospects for closure”.

It also warned the numbers stated in its outlook were under audit and subject to amendment.

In 2015, the company admitted it had overstated its operating profit by nearly $2bn over the past seven years. The Tokyo Stock Exchange ordered it to pay a fine of £494,000 after the overstatement and placed the firm’s stock on alert in September.

It then filed an action for compensatory damages of 300m yen against Hisao Tanaka, its former chief executive, two former chief financial officers and two other ex-chief executives.

In January this year, it was alleged that senior management had a role in padding profits by 40bn yen over a three-year period.

Last month, the company filed its results for the last three months of 2016 without approval from its auditor.

The figures, which had been twice delayed, were released with a disclaimer from auditor PwC Aarata LLC that it was unable to form an opinion of the results.

Toshiba announced that the results will also include the outcome of the investigation into the timing of the overstatement of profits announcement and the acquisition of CB&I Stone & Webster by Westinghouse Electric Company.

“Toshiba expresses its sincerest apologies to its shareholders, investors and all other stakeholders for any concern or inconvenience caused,” it said in a statement.

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