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Toshiba share price jumps despite posting big losses

Toshiba has its back against the wall in the wake of the recent accounting scandal, but investors show relief that the company is still alive

Japanese technology vendor Toshiba seems to be weathering a storm, with the share price going up despite another dismal financial year.

The tech giant recorded a net loss of ¥37.8bn (£208m), compared to ¥98bn in its fiscal 2013, on net sales of ¥6.66tr.

The delayed result was bolstered by the sale of its stake in Finnish firm Kone.

Toshiba is still suffering from fallout from a recent accounting probe, which found that, over the course of seven years, the firm overstated its profits to the tune of ¥151.8bn.

Despite all this, Toshiba’s share price jumped 4.9% in morning trade. On the back of the reporting scandal, Toshiba delayed its full-year results twice and risked becoming delisted. Analysts say that the jump in price was a sign of relief from investors.

The firm apologised to investors for the accounting scandal and outlined a series of measures it had put in place to reform the organisation.

“[Toshiba] expresses its sincere apologies for inappropriate accounting treatment that has severely undermined the trust of shareholders, customers, employees and all other stakeholders,” the statement read.

Toshiba announced that it would reduce the headcount on its board of directors, from 16 to 11, and promised that at least half of the board members would be’ be ‘outside directors’.

“Going forward, resolving management issues and improving the Company’s business environment are all imperatives for the Company, together with putting measures into practice to prevent recurrence,” Toshiba said. “The Company will accelerate business selection and concentration, fundamentally reformulate its business structure and revamp its financial structure, by taking measures to ensure efficient use of assets, including asset sales.”

 

 

 

 

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