2GO bottom line shrinks after special audit of financial results

Listed transport solutions provider 2GO Group Inc. reported a restated audited financial results since 2015, as a result of a special audit after a new president and board of directors were named.

In a filing first disclosed on the local stock exchange on Friday, July 7, and refiled on Tuesday, July 11, 2GO upheld its decision to stick with the results of the special audit conducted by SyCip Gorres Velayo & Co.

The restated financial results shaved off 90 percent off the company's net income in 2015 to P109.131 million, from P1.08 billion as the 2Go earlier reported.

The company also restated its 2016 net income to P344.035 million, or 74 percent lower than the P1.34 billion as reported earlier by the company.

Meanwhile, 2GO said its first quarter 2017 results should have indicated a net loss of P264.86 million, contrary to an earlier reported net income of P267.562 million.

"The audit revealed certain accounts in the previously audited financials required restatement, and the new management, with the support and approval of the newly elected members of the audit committee and the board of directors, agreed to restate prior period financial statements to reflect fairly the state of the business," President and CEO Dennis A. Uy told the exchange.

Shares of 2GO were suspended from trading since July 7, when the shares were priced at P23.30 apiece.

Uy was named president and CEO of 2GO in April, after Sulficio O. Tagud Jr. retired.

"The restatement is a commitment of the new management and board of directors to raise corporate governance standards in the company," Uy said.

In the same filing, 2GO also announced the resignation of chief financial officer Jeremias S. Cruzabra, who was replaced by William Charles Howell on July 7. — VDS, GMA News