Steinhoff shares drop on restated results delay

A probe into accounting irregularities at Steinhoff International and the release of the retailer’s restated results have been delayed, it said yesterday, sending its shares down 21%.

The company said it had been forced to abandon plans to publish both its 2017 and 2018 financial statements by the end of January 2019, citing delays in a forensic investigation being conducted by auditors PricewaterhouseCoopers.

The investigation is being carried out a year after Steinhoff admitted to “accounting irregularities”, sending its shares plunging and leaving it fighting for survival.

Steinhoff said its group audited financial statements would now be released by mid-April next year, with the PwC probe expected to be completed by the end of February rather than the end of this year.

“Unfortunately, despite significant efforts by all parties, it is now clear that the timeline for completing the group consolidated financial reporting and audit process has shifted and it will not be possible for all the work required to be finalised within the original timeframe,” the company said.

In March, PwC said it had sent about 3.3 million records, such as e-mails, for analysis and the contents of laptops and mobile phones were being copied by investigators in what it described as a complex investigation.

Regulators from South Africa, Germany and the Netherlands are combing the evidence for clues and possible culpability in the spectacular fall from grace of the sprawling retail empire.

Steinhoff’s December 2017 disclosure led to the resignation of CEO Markus Jooste and chairperson Christo Wiese, who had overseen the firm’s rapid expansion over almost two decades.

The retailer said PwC’s final report would be made available to it shortly after completion. The 2017 and 2018 financial statements of the company’s wholly-owned subsidiary, Steinhoff Investment, would be released soon after the group’s results. – Reuters

Group audited financial statements will now be released by mid-April next year.’

Steinhoff