Steinhoff share price not spared from the general investor panic

Management board made no specific reference to action initiated against former CEO Markus Jooste and CFO Ben La Grange.
Image: Waldo Swiegers, Bloomberg

The Steinhoff share price wasn’t spared from the general investor panic that has wiped out share prices across the board, although its results weren’t too shoddy.

On Monday, after announcing a 7% advance in revenue, the Steinhoff share ended the day 11.4% lower at 88c, which is just 9c off its all-time low of 79c.

There was nothing unexpected in the results for the three months to end-December, as Pepco Group and Pepkor Africa continued to be the main drivers of Steinhoff’s performance. The central and eastern European retail discounting operations of Pepco hiked revenue an impressive 25%, but the UK and Ireland operations – under brand names Poundland and Dealz – turned in a more tepid 6% increase. “Pepco Group’s ambition is to be the largest discount variety retailer in Europe,” said management. In constant currency terms the combined increased of the European discount operations was 13% to €1.1 billion.

At French furniture and white goods retailer Conforama, revenue edged up a marginal 1% to €805 million. Clothing and general merchandiser Pepkor Africa grew sales by 8% in constant currency terms to R1.3 billion.

The US-based Mattress Firm business managed a 12% increase in revenue to €697 million, despite trading from a significantly smaller stores base following the implementation of Chapter 11 proceedings.

The management board assured shareholders that despite the relatively few statements issued since August 2019, there has been no slackening of the restructuring effort following implementation of the financial restructure last year. “We have maintained our momentum, with significant endeavours continuing across the group.” It is continuing its efforts to stabilise the group and enhance the growth prospects of its core investments.

The management board says it is continuing to work towards a resolution of outstanding legal claims against it while also evaluating potential claims against third parties. It provides no details about any of the extensive range of legal actions in which it is involved.

In South Africa alone nine litigants have lodged claims of over R80 billion.

A large chunk of this, over R50 billion relates to claims by former chairman and controlling shareholder Christo Wiese. In addition, the Public Investment Corporation and GT Ferreira have put in substantial claims.

Earlier this year the Cape Town High Court heard the local litigants explain why they were opposed to Steinhoff’s attempt to consolidate all of the local cases. They contend it is an opportunistic attempt to delay hearing the substance of their claims.

The management board also made no specific reference to action initiated against former CEO Markus Jooste and CFO Ben La Grange to claw back remuneration and bonuses paid over several years. Its only comment was that, “Recoveries against implicated entities and individuals are being initiated where appropriate.”

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Jooste and LeGrange get off scot free. What a joke!!

jnrb:

For people like that, the greatest punishment is that now everybody knows they are crooks and always were – the court of public opinion has sat and reached judgement. Having people spit on you if you dare go outside can’t be fun.

Having a mansion helps, but the gardeners and domestic workers also snicker

Pretty sure Jooste & La Grange have always had enemies. They might have more now, but with their bloated bank accounts I would guess they don’t care one bit while they live out their days in luxury.

Robert Mugabe had a lovely luxurious life while most of the countries people hated him, not to mention Zuma or the Gupta’s, lots of enemies, but a whole lot more money & luxuries.

Wiese does not have a legitimate claim, he was party to the Ponzi Scheme with Jooste

I keep hearing this and I don’t buy it. Jooste was suckered by a con man. Why else would he risk his life’s work ? His claim is a legitimate as any other in this case, no? Why is Wiese’s claim any different from that of GT Ferreira for instance? They were all conned by Jooste.

What con man? who? evidence? Make your case, please.

Ann Crotty. The same person that didn’t know wat a margin call was on december 12/7/2017.

Pepco having more runway to build EBITDA before selling off. I’ll take that thanks.

If your avg cost is R25 plus you’re screwed. But if you got in at anything below 5 rand you’re gonna make 100% when the ipo/PE deal does happen. They also wont sell off 100% so everyone needs to relax.

End of comments.

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