Steinhoff shares get a major boost
The share price climbed to R1.86 a share on Friday afternoon, moments after concluding the meeting with its lenders that took place in London on Friday. It hit a record low of R1.40 a share earlier in the week.
The group also said it expected to publish its third quarter update by August.
“The group is in the process of completing its reporting for the first half of the 2018 financial year and will publish the unaudited consolidated interim results of the group for the first half on June 29,” it said. However, it has estimated that its retail operations would deliver a 1percent increase in half-year revenue to 9.4billion (R141bn), up from last year’s preliminary restated 9.3bn.
The earnings before interest, tax, depreciation and amortisation (Ebitda) margin for the group’s retail operations for the six months is estimated, before taking into account central costs, foreign exchange losses on cross-currency loans and advisory fees, to be between 4percent and 5percent.
The group said this compared to a preliminary restated half-year 2017 Ebitda retail margin of between 5 and 6percent, calculated on an equivalent basis.
The group said that before the publication of the consolidated results it wished to provide guidance which reflected management’s current best estimates and remains subject to further review and change, pending finalisation of the reporting process around the performance of its retail operations, including supply chain and properties, but excluding central services and Poco retail operations.
The Enterprise Chamber of the Amsterdam Court of Appeals ruled in February that Steinhoff must change its accounts to reflect that it held a 50percent controlling interest in Poco, not 100percent, to reflect the part-ownership of Andreas Seifert. Steinhoff was informed by the court that it must amend its 2016 results.
Steinhoff has further estimated that its retail operations will be profitable as a whole for the first half of 2018 at an operating-profit level. However, Steinhoff is still weighed down by its 10.4bn debt.
“It should be noted that, after taking into account central costs, depreciation, advisory fees relating to restructuring, liquidity, litigation and investigation in the first half of 2018, foreign exchange losses on cross-currency loans, impairments, capital losses suffered on asset disposals to generate liquidity and increased interest costs, the company estimates that it will post a loss after taxation on a consolidated basis for the first half of 2018,” the group said.