Choppies trading recommences on the JSE

Choppies, a retail giant in Africa, has recently made headlines with its trading recommencement on the Johannesburg Stock Exchange (JSE). This move comes after a brief suspension and the subsequent publication of audited group results for the years ending in June 2018, June 2019, and the interim results concluding in December 2019. Ramachandran Ottapathu, the CEO of Choppies, joined CNBC Africa to shed light on the sequence of events leading to this significant development. During the interview, Ottapathu revealed that the JSE sought clarifications regarding the company's consolidated accounts, auditor opinions, and audit committee findings. After providing comprehensive explanations and narratives, the JSE was convinced to lift the suspension, allowing Choppies shares to trade freely on the exchange once again. Ottapathu emphasized the cooperation between the company's audit committee and auditors in addressing the JSE's concerns. An intriguing aspect of the auditing process was the transition between old and new auditors. Ottapathu clarified that the discrepancy arose from differing stock take procedures followed by the auditors. While the previous auditors had attended the stock take, the new auditors needed to undertake a distinct procedure due to their appointment timing. This explanation resolved any doubts raised by the JSE, highlighting the importance of transparency and accountability in financial reporting. Looking ahead, Ottapathu remained optimistic about Choppies' performance, citing the company's resilience in challenging times. Despite the impact of COVID-19-related lockdowns, Choppies continued to operate efficiently in regions like Botswana, Zambia, Zimbabwe, and Namibia. Ottapathu attributed this stability to the company's prudent management and strategic operational decisions, emphasizing a consistent track record of trading well in these key markets. Addressing concerns about stock liquidity, Ottapathu acknowledged the need to regain investors' confidence post-suspension. He expressed confidence in the JSE's liquidity compared to other stock exchanges and anticipated a gradual return of trading activity as trust in Choppies' performance resurfaces among investors. The interview delved into internal dynamics within Choppies, particularly the board and management dynamics. Ottapathu clarified that disagreements between the board and management, rather than shareholders, had influenced the company's recent turmoil. However, with a revamped management approach and a clear vision for the future, Choppies appears poised for a fresh start. In conclusion, Ottapathu's insights shed light on Choppies' recent challenges and the strategic measures undertaken to restore faith in the company's financial transparency and operational resilience. The recommencement of trading on the JSE marks a pivotal moment for Choppies, signaling a renewed commitment to governance best practices and strategic growth objectives.