The non performing facilities increased (108%) and impairment steeply increased and profit declined sharply by (47 %) [Source-CSE records].
Independent Directors Choksy and Ratnayake (connected to Abans group ) were not able to improve the performance. The investors in to Ironwood investments were pressurizing non- independent Director Parekh ( and his alternate Wickramasuriya) to improve the performance or exit from the investment as they continue to incur capital losses (share trading @ 21 down from acquired price of 25 and original price of 69.90). [Source-CSE records]
However, the investment cannot be sold before 3 years as stipulated by CBSL. Abans has also included the shares owned by connect companies such as Able Investments and allocated to nominee staff members within the free float and misled the CSE and SEC.
Frequent quarrels between the CEO (who is responsible for decline in profits , uses filth in speaking with staff) and COO ( who is responsible for increase in impairment , harasses mainly female staff members) has become a hindrance to the performance. [Source- staff]
In this scenario where the performance of Abans Finance cannot be improved , the share price is likely to decline further. The share holders and investors are advised to be cautious in investing in this share.