Steinhoff says earlier financial results cannot be relied upon

While the internal review of the accounting irregularities by Steinhoff’s management team and the PwC investigation are progressing, the timeline for completion remains uncertain, the company said in a statement on Tuesday.

In December, shares in Steinhoff International Holdings fell as much as 80% following the resignation of the company’s CEO, Marcus Jooste, amid allegations of accounting irregularities.

The company had previously stated in December, that it would have to reinstate its 2016 consolidated financial statements as well as the 2017 financial statements, indicating that the accounting irregularities may have occurred over a number of years.

In addition, the company said that it would continue to consider whether any other prior years’ financial statements would need to be restated.

In a statement on Tuesday, Steinhoff said: “The company wishes to confirm that the audited 2017 consolidated financial statements of the company will be accompanied by the restated 2016 consolidated financial statements.

“In addition, the consolidated statements of financial position will be accompanied by a restated comparative 2015 statement of financial position of Steinhoff International Holdings Proprietary Limited, the former listed holding company of the group (then called Steinhoff International Holdings Limited), that will provide additional insight into the cumulative and consolidated opening balances in the 2016 restated consolidated statement of financial position.”

Due to the restatements, the 2016 and 2015 financial statements of Steinhoff International Holdings Proprietary Limited can no longer be relied upon, it said.

“Furthermore, whilst the internal review and investigation into the accounting irregularities have not yet concluded, the restatement of the financial statements of Steinhoff International Holdings Proprietary 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,” it said.

The company said it continues to work with its external auditors to seek to conclude the audit of its 2017 consolidated financial statements as soon as reasonably practicable.

Read: Steinhoff downgraded deeper into junk

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Steinhoff says earlier financial results cannot be relied upon