Statement regarding share price movementMarch 7, 2014
FOR IMMEDIATE RELEASE
7 March 2014
GLOBO plc (“Globo” or “the Company”)
Statement regarding share price movement
Globo plc (LSE-AIM: GBO), the international mobile solutions and IT company, notes the significant move in its share price since 6th March 2014.
Globo is not aware of any material reason for the move in its share price.
As noted in its statement of 6th March, Globo has recently appointed Grant Thornton as its auditor, replacing its incumbent auditor, BDO. BDO has also filed a letter at Companies House notifying that Globo requested its resignation as auditor. There are two important points to note:
1. BDO stated in its letter that it was not able to reach a “mutually acceptable audit scope in relation to our involvement in the work of component auditors, needed to obtain sufficient appropriate audit evidence on which to base the audit opinion on the group financial statements.”
For the purposes of clarification, BDO had requested to take over the audit of all Globo group companies, including the audit of all subsidiary companies, which was performed at that time by Globo’s component auditors, Grant Thornton. BDO’s proposal was at greatly increased cost, which was not acceptable to the Board of Globo. It is because it was not appointed to audit the subsidiaries that BDO stated that it did not have an “acceptable audit scope”.
Globo has now appointed Grant Thornton to audit all its group companies, including subsidiaries.
2. BDO has not raised any other concerns relating to the work that it did in relation to the Globo group prior to its resignation. The audit for the full year ending December 31st 2013 had not yet been commenced when BDO was replaced.
As Globo is currently in a Close Period it cannot comment on trading, but refers investors to the Trading Update of January 28th which indicates strong operating performance, balance sheet and cash generation.
Costis Papadimitrakopoulos, CEO
Dimitris Gryparis, Finance Director
Mike Jeremy, IRO
RBC Capital Markets (Nominated Adviser & Broker)
Stephen Foss or Pierre Schreuder