Steinhoff share price plunges as PwC forensic report, audited results delayed

JOHANNESBURG, Dec 6 (Reuters) – Steinhoff International Holdings share price fell almost 11 per cent in early morning trade to R1.59 after revealing that it now expects to publish its group audited financial statements for 2017 and 2018 by mid-April 2019, as a forensic investigation by auditors PricewaterhouseCoopers (PwC) has been delayed, the retailer said on Thursday.

The probe by PwC into the company’s affairs is now expected to be completed by the end of February 2019, and the final investigation report will be available to the company shortly thereafter, Steinhoff said.

Steinhoff, which has more than 40 retail brands that include France’s Conforama and British chain Poundland, is trying to emerge from a crisis after admitting “accounting irregularities” in December, wiping about 85 percent off its market value and triggering a liquidity crisis.

READ: Inside the Steinhoff saga, one of the biggest cases of corporate fraud in South African business history

“Unfortunately, despite significant efforts being exerted 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 a statement.

The 2017 and 2018 financial statements of the company’s wholly owned subsidiary, Steinhoff Investment Holdings Ltd, will be released shortly after the group’s results.

The retailer 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 financial statements. (Reporting by Nqobile Dludla; Editing by Amrutha Gayathri)

Related Content

SA economy contracts by 0.6% in third quarter

The rand took a battering against the dollar after South Africa’s Q3 GDP statistics showed a 0.6 per cent quarter over quarter contraction including key sectors such as mining, manufacturing and transport. Are we likely to revise down the already pitiful growth target of 0.5 per cent for 2019? And do we as South African’s fixate on single data points at the risk of not seeing the bigger picture? Graeme Korner, Director at Korner Perspective and Lullu Krugel, PwC Partner, Strategy & and Chief Economist join CNBC Africa for more.

Nigeria’s Finance Bill: What you need to know

Nigeria's Finance Bill seeks to shore up the government's revenue base by amending seven acts of the National Assembly relating to taxes. Ken Erikume, Partner of Tax Reporting and Strategy at PwC Nigeria joined CNBC Africa's Kenneth Igbomor to breakdown the Finance Bill, as members of Nigeria’s House of Representatives boycotted the public hearing slated for Tuesday.

More Africans appreciating tax systems and benefits of compliance

Has the tax education initiatives conducted by different revenue authorities across the continent had the desired impact of increasing the levels of compliance and promoting tax literacy in Africa? Our guest for today Paul Frobisher Mugambwa, Associate Director, Tax services at PwC joins CNBC Africa for more.

PwC surveys on 1000 CEOs confirms optimism for second half of 2019

Despite slower growth in the first half of 2019, CEOs and senior management leaders on the continent seem to be optimistic about the second half of the year according to a survey carried out by auditing firm PricewaterhouseCoopers (PwC). On the findings of this survey, Senior Partner at PwC Nadine Tinen joins CNBC Africa's Arnold Kwizera for more.

Subscribe to our newsletter

Sign up for free newsletters and get more CNBC AFRICA delivered to your inbox

More from CNBC Africa

Implement substantive reforms, Paris Club creditors tell Zimbabwe

HARARE (Reuters) - Zimbabwe should implement sustainable political and economic reforms and successfully complete an IMF monitoring programme in order to normalise...

BFA Asset Management on Angola’s annual budget outlook

Chinese debt relief given to emerging markets that are facing the pressure from the Covid-19 pandemic may pose some threats to countries that already have vast amounts of debt owing to facilities. Joining CNBC Africa to unpack debt relief implications for Angola and Mozambique and as well as the Angolan annual budget outlook is Rui Oliveira, CEO at BFA Asset Management.

L’Oreal’s Hlengiwe Mathenjwa on how Covid-19 has impacted the beauty & skincare industry

The 111 year old French beauty giant L’Oreal has appointed Hlengiwe Mathenjwa as the new director of its largest manufacturing facility in the Africa and Middle East region. This appointment comes amid the Covid-19 storm that is ravishing most industries globally, Hlengiwe Mathenjwa joins CNBC Africa for more.

COVID-19 lock-down: How the Gauteng government plans to safely reopen schools

Since the gradual opening of the economy after lock-down there has been a sharp incline of COVID-19 cases. The government has the task of balancing the health of the people with keeping the economy going and opening the schools. How is the Gauteng provincial government helping? The Gauteng MEC for education is laying out the plans to welcome back school goers....

Partner Content

Maktech’s Godwin Makyao: Now Is A Time of Entrepreneurial Opportunity in East Africa

As an executive decision-maker in both the telecommunications and tourism industries, Godwin Makyao could not have experienced a more diverse set of...

Sanlam launches urgent job-preservation initiative in response to COVID-19

Sanlam Investments is responding to the COVID-19 pandemic through large-scale support of the recovery of South African companies, from small enterprises to...

Trending Now

Uganda growth to sink as low as 0.4% this year – World Bank

KAMPALA (Reuters) - Ugandan economic growth is set to plunge to as low as 0.4% in 2020 from 5.6% last year as...

Kenyan sports minister Amina Mohamed to bid for top WTO job

The Geneva-based body is seeking a replacement for Brazil’s Roberto Azevedo who is stepping down a year early at the end of August at a critical juncture for the trade watchdog.

COMMENT: COVID_19 – Crazy times call for crazy measures

On the 10th of September, 2001 – you could walk up to an airline counter, buy a ticket with no ID, walk straight through to the gate, get on a plane, pop into the cockpit to say hi to the captain, and within reason do what you wanted.

How COVID-19 could condemn millions of Africans into extreme poverty

The African Development Bank says an additional 49 million Africans could be pushed into extreme poverty by the Covid-19 pandemic and its aftermath. This was in the updated forecast of the Africa Economic Outlook, where they expect Central Africa and West Africa to be the hardest-hit regions. Kayode Akindele, Partner at TIA Capital joins CNBC Africa for more.
- Advertisement -