Steinhoff Gains As Retailer Plans To Restate 2015 Results
Shares of Steinhoff International Holdings rose after the South African retail giant said it will restate financial results going back as far as 2015 amid a probe into accounting irregularities.
The stock jumped 27% to 5.90 rand by 9:56 am in Johannesburg, the most on an intraday basis since December 12.
Shares in Steinhoff, whose retail empire includes France’s Conforama furniture chain and Poundland in the UK, have slumped 87% since the company announced an investigation into its finances and the resignation of its chief executive officer on December 5.
The retailer’s 2017 results will be accompanied by a restatement of its 2016 financial statements as well as the 2015 earnings of Steinhoff International Holdings Pty, the former Johannesburg-listed entity for the group, the company said in a statement.
Steinhoff moved its primary stock listing to Frankfurt in 2015. The restatements won’t impact its Steinhoff Services business, which has bonds listed in Johannesburg.
“That the restatements will not apply to Steinhoff Services should be seen as positive as it builds on the impression that the accounting difficulties are confined to some European operations,” Bloomberg Intelligence analyst Charles Allen said in an email.
The bedding giant appointed auditor PwC to probe accounting irregularities. Moody’s Investors Service cut Steinhoff’s rating deeper into junk last week, saying the company may struggle to refinance or repay some of its debt due this year.
Steinhoff, which delayed publication of its 2017 results, previously said it would need to restate its 2016 numbers, without providing details on the extent of the problems.