Pepkor Holdings: Sound business model should ensure gains
Pepkor reported a relatively resilient set of numbers for the six months ended March
Prior to the Covid-19-induced lockdown, the local retail industry was already feeling the pinch of lower consumer spending and weak economic growth.
However, Pepkor (which is, for now, majority held by Steinhoff) reported a relatively resilient set of numbers for the six months ended March. These results were affected by the adoption of IFRS 16, the new accounting requirements for lease accounting, and for the six-month period headline earnings showed a drop of 13.6% to 44.3c a share.