South African retail giant Steinhoff international, which owns Poundland in the UK, has announced that its accounting irregularities may date back to before 2015 meaning it will have to restate more of its accounts, having previously warned on its 2016 accounts
In a statement the company said: ‘whilst the internal review and investigation into the accounting irregularities have not yet concluded, the restatement of the financial statements of Steinhoff Investment Holdings Limited for years prior to 2015 is likely to be required and investors in Steinhoff are advised to exercise caution in relation to such statements.’
The company’s 2017 accounts will be accompanied by restated financials for 2015 and 2016 with the company noting that the previous figures for these years ‘can no longer be relied upon’.
Steinhoff has postponed its 2017 results until the investigation has been finalised, stating that the company will ‘publish the audited 2017 consolidated financial statements when it is in a position to do so’.
PwC has been called in by the company to perform an independent investigation into the accounting irregularities.
When the irregularities came to light Markus Jooste, CEO of Steinhoff, tendered his resignation and the board’s chairman Dr Christo Wiese was appointed as executive chairman (delegated supervisory chairman) on an interim basis.
Steinhoff has extensive UK interests, including Poundland, Harveys, Benson for Beds and Pep &co. Poundland UK was acquired in July 2016 for £597m by the company which owns over 30 discount retail chains around the world.
Report by Amy Austin
