Cautionary tale: Investec warns on exposure to owner of Poundland

Investec has warned that its exposure to Poundland’s South African owner, Steinhoff, could dent profits. It comes after shares in Steinhoff tanked last week with the firm’s chief executive departing. Investec said its exposure represents a “small portion of the group’s balance sheet” and it is not “expecting to suffer any losses”. However, it added: “Investec Bank Limited (South Africa) does have certain derivative exposures linked to the Steinhoff share price, where a trading loss could materialise.”