By Nkiruka Nnorom

Auditors of Multiverse Resources Plc, Sola Oyetayo & Co, have expressed uncertainty over the ability of the company to continue as a going concern following existence of huge losses and liability in its 2014 audited account. (following significant erosion of its capital).

According to the auditors, the company’s financial statement for the year ended December 31, 2014, which it qualified, gave a ‘true and fair view of its state of affairs’ during the period under review.

The result presented at the Nigerian Stock Exchange, NSE, and obtained by Vanguard showed that it posted loss before tax of N580.014 million as against N612.733 million recorded in the same period in 2013.

Further breakdown showed that it ended the year with a loss after tax of N552.408 million, which is higher than N49.169 million revenues achieved during the year. It had recorded N549.328 million loss after tax and N286.184 million revenue as at the year ended December 31, 2013.

Also, the company’s cost of sales rose to N140.654 million compared to N102.421 million in 2013, a 37.3 per cent increase, while the finance cost jumped to N243.653 million as against N174.207 million posted in December 2013, also indicating a 39.9 per cent increase.

Its total current liabilities stood at N1.832 billion, while the total current assets stood at N78.731 million at the review period.

The auditors said in their independent report to the members of the company, “In our opinion the accompanying financial statements give a true and fair view of the state of affairs of the company as at December 31, 2014 and its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards and in the manner required by the Companies and Allied Matters Act 1990, CAP C20 LFN 2004 and the Financial Reporting Council of Nigeria Act, 2011.

“We, however, draw attention to Note 27 to the financial statements which indicates that the company incurred a net loss of N552,408,000 for the year ended 31 December 2014 (2013 : N549, 328,000) and, as at that date, the company’s current liabilities exceeded its current assets by N 1,753,109,000 (2013 : N 1,133,970,000).

“These conditions together with other matters (as explained in Note 27), indicate the existence of a material uncertainty which cast doubt on the company’s ability to continue as a going concern.”

Multiverse Plc is engaged in the business of exploring, extracting, prospecting, boring, refining, drilling for, producing, and quarry mining of stones and other extractive solid minerals (mainly Lead and Zinc) into different configuration and classification.