Steinhoff Reports Reduced Losses

South Africa's Steinhoff - the ultimate owner of Poundland - has reported half-year losses of €356m (approx £315m), compared with £530 million in the previous year.  

Sales for the period reached €6,862 million, up 3%, with Poundland's parent company - Pepkor Europe - reporting a 13% rise in sales.

Steinhoff's accounting practices were called into question in 2017 with an investigation revealing that the company had overstated profits and assets by nearly $12 billion. The scandal resulted in the resignations of Markus Jooste (CEO) and Christo Weise (chairman).

The Group said:

"Despite the many challenges we faced in the six months ended 31 March 2019, the Group’s consolidated net sales from continuing operations increased by 3% to €6 862 million (2018: €6 666 million), with strong contributions from Pepkor Europe (+13%) and Pepkor Africa (+2%). Segmental EBITDA, from continuing operations, increased by 71% to €393 million (2018: €230 million). Further information on the performance of the Group’s individual operating businesses is contained within the accompanying Operational Review.

In the previous quarter, for the three months ended 31st December 2018, Pepkor Europe reported a 15% rise in revenue. 

The reduction in losses saw shares in Steinhoff rise by over 14%.

The Group spent €82 million on advisory fees during the six-month period, including €11 million on forensic accounting and support.  Steinhoff stated: “While every effort is made to limit costs, we expect this to remain our reality for some time.” 

Steinhoff states that its financial reporting is now up to date.

Source : Insight DIY Team

Image : Barry Barnes - shutterstock.com (331061975)

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