One year on, Steinhoff delays explanation


One year on, Steinhoff delays explanation

Published Date: 2018-12-07 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

One year on, Steinhoff delays explanation

Shares in the beleaguered retailer tumbled after it shifted the release of a forensic report into financial irregularities until next year.

Exactly a year after Steinhoff's shares went into free fall after it admitted to massive accounting irregularities, the furniture group has delayed the results of a forensic investigation into what went wrong, sending its shares tumbling again.

Steinhoff's stock dropped as much as 21% yesterday after it said PwC's report would likely only be released after next February. The report was expected to be published by the end of the year and although the investigation is substantially complete, Steinhoff said more time was required to finalise a number of follow up work streams. The investigation is now expected to be done by the end of February, with the final report being available to the company shortly after that. The release of its annual financial statements for 2017 and 2018 have also been postponed, from the end of December and the end of February respectively, until mid-April.

The company said once the forensic report findings and the final accounting treatments are resolved by the group, the statutory auditors need to complete the outstanding audit processes for all of the years involved in the build up to these statements.

Sonn said the group's financial restructuring continued to make good progress and would introduce financial stability to the group. She said these plans were unaffected by the delays in the various reports.

Its shares retraced some of their losses to close 10% down at R1.60.

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