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Steinhoff posts 2% rise in nine-month sales

Boosts came from separately listed African unit Pepkor, which offset weak results from Europe and the United States.
Steinhoff says it plans to maintain stability as sales recovers in June. Picture: Dwayne Senior, Bloomberg

Steinhoff reported a slight increase in nine-month sales on Friday as its managers remained preoccupied with cleaning up after an accounting fraud that nearly tipped the South African retailer into bankruptcy.

Steinhoff was thrown a lifeline last month when its creditors agreed to delay debt claims for three years after the multinational retailer uncovered accounting irregularities that sent its shares crashing and left it scrambling for working capital.

The company, which is registered in the Netherlands, said sales rose 2% to 12.9 billion euros ($15 billion) in the nine months through June as a strong showing at its separately listed African unit, Pepkor, offset weak results from Europe and the United States. The group’s brands include Mattress Firm in the United States and Poundland in Britain.

“As a management team we are focused on maintaining stability within the operations; finalising the implementation of the restructuring plan with the group’s financial creditors; improving governance at all levels,” the company said in a statement.

Shares in Steinhoff rose 3.17% to R2.95 as of 10:26 GMT, valuing the company at around R12 billion, far from the more than R200 billion valuation the stock fetched just nine months ago.

Steinhoff has already written down the value of its assets by more than $12 billion following initial findings of an investigation into the company’s past bookkeeping practices.

The probe, being carried out by auditing firm PwC, has uncovered accounting irregularities that date back to at least 2015, and is expected to be completed by the end of the year. 

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Clearly shows that the SA Pepkor and Pepkor Europe (Poundland and Pepco Poland) which were all part of the Pepkor Holdings (SA) prior to being sold to Steinhoff are the profitable businesses with good management, yet Jooste and his cohorts (ex Tekkie Town execs) believed the management of those businesses are useless. Go figure !!

At least those “crooks” are gone.

Buy your cheap shares now!

An increase of a mere 2% in overall sales do not at all translate in a healthier positive cash-flow from operations. Operating expenses, auditing fees, legal fees, consultancy fees, financing charges, facilities rental charges, stock and remuneration have all increased dramatically. Net profit for the 2018 financial year will be none existent. Steinhoff continues to sell-off assets to cover operational obligations whilst the huge, over-extended debt levels still do not decline.

Steinhoff is still overpriced by R2.83

I forgot about Weise, who kick Pepkor and Shoprite management out and went with Jooste. Bet he is now kicking himself.

Wiese is not a very wealthy man for nothing.

I am sure he knows very well what he is doing. I am sure he has a bigger plan.

Plan BoltFromTheBlue now required, as Plan Jooste backfired spectacularly

Wiese is an opportunist go check how he started his Checkers/Pepkor operations

End of comments.

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