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Toshiba share price up despite £208m loss

Toshiba investors are said to be relieved that, by meeting the latest deadline to post its results, the company has avoided the risk of delisting

Shares in Japanese technology firm Toshiba jumped 4.9% in morning trade in Tokyo despite posting a net loss of ¥37.8bn (£208m) for the fiscal year ending 31 March 2015.

The company also restated earnings for the previous six years as it tried to recover from an accounting scandal that has seen its share value fall nearly 30% since the scandal broke in April 2015.

Analysts said investors were relieved that, by meeting the latest deadline to post its results, the company had avoided the risk of delisting.

The company has twice delayed publishing its financial results for the 2014/2015 fiscal year due to investigations into the firm overstating profits going back to fiscal 2008/09 by ¥155bn (£854m).

Toshiba’s chief executive, three most recent presidents and other board members stepped down in July 2015 after the accounting probe found the firm suffered from poor governance.

The company is now seeking to regain the confidence of investors by pledging to improve governance with a revamped board of directors.

Publication of the results follow the sale of Toshiba’s 4.6% stake in Finnish firm elevator firm Kone, worth £621m, according to Bloomberg News.

“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,” Toshiba said in a statement.

Toshiba announced that former Shiseido president Shinzo Maeda would be the head of a revamped, mainly external 11-member board, pending approval at an extraordinary shareholders' meeting on 30 September 2015.

But according to Reuters, analysts said the company is still facing a number of issues, such as what to do with its unprofitable PC and TV businesses.

Overall, Toshiba reported net sales of ¥6,655bn, up ¥166.2bn yen from the previous year, commenting that "while the US economy had lost some momentum in the second half of FY2014, the UK had witnessed a strong performance and the Eurozone had sustained a gradual recovery" adding that, despite China's slowdown, “the emerging economies saw a continued gradual recovery, reflecting solid growth in Southeast Asia and India”. 

Toshiba did not provide an earnings forecast for the current fiscal year, which ends in March 2016.

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