Steinhoff Africa reports plunge of almost 50% in interim earnings
Star says the six months were ‘very challenging’ but regards the removal of all cross guarantees pertaining to Steinhoff shareholder funding as a ‘major milestone’
Steinhoff Africa Retail (Star) reported a 49.1% drop in headline earnings per share (HEPS) for the six months to end-March, citing debt obligations to Pepkor management.The debt was converted from Pepkor shares into Steinhoff shares in 2011. HEPS fell to 36.2c in the period.Star’s exposure to the third-party debt, relating to a Pepkor management investment company, amounted to R440m, it said."The Star board has taken the conservative approach to fully provide for Star’s exposure in this regard," the company said.In addition, there was a provision for an impairment of loans associated with the third-party debt, amounting to R60m, thereby sufficiently providing for Star’s exposure.At 10.37am Star shares on the JSE had fallen 4.08% to R16.21. Steinhoff International dropped 6.99% to a record low of R1.33.No interim dividend was declared by Star.Star revenue for the six months rose 15.9% to R33bn, while operating profit before capital items fell 2.9% to R2.7bn.On a comparable basis, Sta...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.