Global retailer Steinhoff has delivered its investor presentation in Cape Town after it released its 2017 and 2018 annual reports, as well as results of the first half of 2019.
The company’s CEO Louis du Preez explains that some of the delays surrounding the annual reports were due to the massive accounting scandal that broke in 2017, as well as the finalisation of the audit firm PwC’s 3 000-page report.
I am glad to report that we are back up to date, some of the delays obviously caused by the finalisation of the much spoken about PWC report. We aim to bring out a trading update for the third quarter towards the end of this month.— Louis du Preez, CEO - Steinhoff
de Preez says an immense amount of work has gone into recalabrating.
At a given time there were 160 forensic auditors just at PWC working through this assignment. I think the judgements that we refer to in the financial statements are as accurate as can be. Unfortunately in some instances we didn't know who the counter parties were and we had to make some judgements, I think it is as accurate as it will get.— Louis du Preez, CEO - Steinhoff
He says the full PWC report will continue to be confidential because of inbound litigation that the group faces.
As importantly is the group has also embarked on outbound litigation...we are using that report and will use it in the fullness of time to assist us in those processes.— Louis du Preez, CEO - Steinhoff
I think one of the big icebergs that we need to deal with is the litigation.— Louis du Preez, CEO - Steinhoff
The company is looking to sell off some of its assets to focus on those that are more profitable as it tries to get itself out of a massive debt.
Click on the link below to hear the full conversation...