20°C / 22°C
  • Tue
  • 23°C
  • 5°C
  • Wed
  • 25°C
  • 6°C
  • Thu
  • 27°C
  • 10°C
  • Fri
  • 30°C
  • 11°C
  • Sat
  • 30°C
  • 13°C
  • Sun
  • 29°C
  • 13°C
  • Tue
  • 30°C
  • 20°C
  • Wed
  • 29°C
  • 18°C
  • Thu
  • 29°C
  • 18°C
  • Fri
  • 25°C
  • 17°C
  • Sat
  • 34°C
  • 16°C
  • Sun
  • 33°C
  • 18°C
  • Tue
  • 23°C
  • 9°C
  • Wed
  • 25°C
  • 8°C
  • Thu
  • 30°C
  • 10°C
  • Fri
  • 32°C
  • 12°C
  • Sat
  • 32°C
  • 14°C
  • Sun
  • 30°C
  • 15°C
  • Tue
  • 24°C
  • 7°C
  • Wed
  • 24°C
  • 9°C
  • Thu
  • 27°C
  • 7°C
  • Fri
  • 30°C
  • 9°C
  • Sat
  • 32°C
  • 12°C
  • Sun
  • 29°C
  • 13°C
  • Tue
  • 24°C
  • 14°C
  • Wed
  • 26°C
  • 15°C
  • Thu
  • 26°C
  • 16°C
  • Fri
  • 27°C
  • 17°C
  • Sat
  • 25°C
  • 19°C
  • Sun
  • 23°C
  • 19°C
  • Tue
  • 29°C
  • 18°C
  • Wed
  • 23°C
  • 17°C
  • Thu
  • 22°C
  • 15°C
  • Fri
  • 20°C
  • 16°C
  • Sat
  • 21°C
  • 16°C
  • Sun
  • 22°C
  • 15°C
  • Tue
  • 34°C
  • 21°C
  • Wed
  • 32°C
  • 19°C
  • Thu
  • 32°C
  • 18°C
  • Fri
  • 35°C
  • 18°C
  • Sat
  • 38°C
  • 20°C
  • Sun
  • 38°C
  • 21°C
  • Tue
  • 28°C
  • 21°C
  • Wed
  • 28°C
  • 19°C
  • Thu
  • 26°C
  • 19°C
  • Fri
  • 28°C
  • 18°C
  • Sat
  • 30°C
  • 19°C
  • Sun
  • 30°C
  • 20°C
  • Tue
  • 24°C
  • 11°C
  • Wed
  • 27°C
  • 9°C
  • Thu
  • 30°C
  • 11°C
  • Fri
  • 34°C
  • 12°C
  • Sat
  • 33°C
  • 16°C
  • Sun
  • 33°C
  • 16°C
  • Tue
  • 26°C
  • 9°C
  • Wed
  • 28°C
  • 11°C
  • Thu
  • 30°C
  • 11°C
  • Fri
  • 33°C
  • 13°C
  • Sat
  • 33°C
  • 16°C
  • Sun
  • 34°C
  • 16°C
  • Tue
  • 22°C
  • 9°C
  • Wed
  • 25°C
  • 6°C
  • Thu
  • 27°C
  • 8°C
  • Fri
  • 30°C
  • 9°C
  • Sat
  • 29°C
  • 11°C
  • Sun
  • 24°C
  • 14°C
  • Tue
  • 31°C
  • 19°C
  • Wed
  • 27°C
  • 16°C
  • Thu
  • 28°C
  • 15°C
  • Fri
  • 22°C
  • 16°C
  • Sat
  • 24°C
  • 16°C
  • Sun
  • 29°C
  • 18°C

Steinhoff confirms 2015 results to be restated

The announcement underscores the extent of an accounting scandal that has wiped billions of dollars off the market value of the South African retailer.

Former Steinhoff CEO Markus Jooste. Picture: Gallo Images/Financial Mail/Jeremy Glyn

JOHANNESBURG - Steinhoff said on Tuesday that its 2015 results would have to restated, underscoring the extent of an accounting scandal that has wiped billions of dollars off the market value of the South African retailer.

Steinhoff has delayed its 2017 annual results and said its 2016 results could no longer be relied upon after discovering what it called accounting irregularities.

Last month, rating agency Moody’s cut its rating for Steinhoff International Holdings to Caa1, seven notches into junk, warning that further downgrades could follow due to mounting cash flow problems at the retail group.

Steinhoff, the owner of many European and US brands, told investors in December it was losing credit lines from lenders over the scandal.

This was after veteran CEO Markus Jooste quit and the company came under scrutiny from local and overseas regulators.

Moody’s, which had already downgraded Steinhoff’s credit rating earlier in December, says the new rating reflects a “substantial risk” of default.

Steinhoff has $2 billion of term loans maturing between 2018 and 2020, and the interest rate payable on the loans is expected to soar to around 250 to 280 basis points, above the benchmark lending rate of European banks following the downgrades.

The company has yet to explain in full what has been called “accounting irregularities”.

The Independent Regulatory Board for Auditors (IRBA) has confirmed that it is investigating Steinhoff's auditors, Deloitte.

CEO Bernard Agulhas said that they'll probe audits of financial years dating back to 2014.

"The years that we will be investigating will be the financial years ended in 2014, 2015 and 2016 and we will specifically be investigating the audit of Steinhoff International PTY Limited, which is the local subsidiary of Steinhoff."

Additional reporting by Ray White.

Comments

EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the EWN community a safe and welcoming space for all.

EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

comments powered by Disqus