Labat Africa missed the JSE’s 30 September 2025 deadline to submit its latest financials or face suspension in the trading of its shares. Instead it abruptly replaced its auditor with a new company, which it says will ensure JSE compliance.
Labat said ‘thank you and goodbye’ to external auditors, Khumalo Xaba Xulu (KXX) with effect from 23 September 2025 after ‘careful consideration’. It had appointed KXX in January 2024 to sort out its financials after it fell out with its previous auditors, Nolans, after a “steady breakdown of the relationship and communication from October 2023 onwards”.
In a statement released on 28 September 2025 through the JSE’s SENS news service, Labat says: “This decision (to terminate KXX’s services) follows the challenges experienced in completing the audit within the required reporting timelines”.
Labat is acting with some urgency. It has appointed P Mapfumo Accountants and Auditors as the company’s new lead external auditors with effect from 23 September 2025. Labat says Phossina Kaserera will be tasked with completing the financial statements for the year ending 31 May 2025 and will be supported by two additional IRBA registered auditors, BG Nubong and Associates Inc and MGT Accounting and Consulting Inc and” will also utilise third party resources if needed for specific components of the audit, in order to meet the tight deadlines set to complete the audit”.
Earlier this year Labat successfully appealed a judgement against it related to a dispute over the “excessive fees” charged by its auditors.
Ngubane Zeelie Inc sued Labat, South African Microelectronic Systems (Pty) Ltd and Sames Properties (Pty) Ltd in a lower court for more than R890 000. It said this amount was due to it under an agreement, and alleged that Labat had not paid. The higher court found that Labat had not signed off on Ngubane Zeelie’s billing and therefore could not be obliged to pay for a service in which it had not known the exact amount.
The JSE has given Labat an extra month to prepare its financials, saying they have to be submitted by end end of October or its shares will be suspended on the exchange.
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