Derrimon aims for June 30 accounts filing after JSE halts share trading

Derrimon Trading Company Ltd says it plans to publish its outstanding 2025 audited financial statements by June 30, after issues linked to its accounting system held up the filing and led the Jamaica Stock Exchange to suspend trading in its shares.

In a market disclosure this week, the food distribution company said its 2025 year-end audit uncovered matters that needed more checking and confirmation before the audited statements could be completed.

Chairman Derrick Cotterell told the Financial Gleaner the company chose to prioritise full and accurate reporting instead of sending unfinished information to the market. "We prefer … the risk of suspending the shares than to … send out an incomplete report to the stock exchange," Cotterell said.

Derrimon said the difficulty was tied to its accounting technology, specifically questions about data produced from its Enterprise Resource Planning system. It said its auditors brought in specialists to conduct further work on the nature, scope and possible impact of the matters found.

Cotterell said the concerns were not simple accounting errors, but technical matters that required expert review, including some input from overseas. The company said the extra review was intended to protect the reliability of the figures, and that the accounts should be issued only when the relevant matters had been properly examined, checked and assessed. It now expects to release the audited statements by June 30, 2026.

The company said the added time should allow the review to be completed and ensure stakeholders receive financial information that is complete, dependable and backed by a proper understanding of the issues involved.

On Tuesday, the JSE announced that trading in Derrimon's ordinary shares had been suspended. The exchange said the company's 2025 audited financial statements were due on March 2, 2026, and became 92 days late on June 2. It said the action was taken under the Junior Market rules governing audited annual accounts, with trading stopped until the statements are submitted.

JSE data show Derrimon's share price rose about 12 per cent in the first quarter, ending March 31 at $1.82, before falling back to $1.44. That left the stock down 9.1 per cent for the year to date. Over the past 52 weeks, the shares have traded between $1.35 and $2.00.

In the March quarter, 33.6 million Derrimon shares changed hands, representing less than 1.5 per cent of the 2.28 billion units traded across the combined market for the period, according to JSE figures.

Derrimon sought to assure investors and other stakeholders that the review has not disrupted its business. It said it remains focused on customers, suppliers, employees, shareholders and other stakeholders while the process continues, and remains committed to meeting its disclosure duties through accurate, reliable and responsible reporting.

"Our commitment is to provide them with the full picture and true picture of the business," Cotterell added.

Derrimon is also awaiting resolution of insurance matters connected to its overseas operations. Cotterell said its New York business, which had sustained damage, is back in operation, but the financial recovery process is not finished. "Insurance is not settled. We have a couple legal claims up there," he said. The company said the independent review and audit work will need more time as specialists finish their assessments, but expressed confidence that the process will result in clearer and stronger financial statements.