|STEINHOFF INTERNATIONAL HOLDINGS N.V. - Steinhoff - Update On Forensic Investigation And Financial Reporting Timeline
|6 December 2018 7:05
SNH SHFF 201812060001A
Steinhoff - Update On Forensic Investigation And Financial Reporting Timeline
Steinhoff International Holdings N.V.
(Incorporated in the Netherlands)
(Registration number: 63570173)
Share Code: SNH
Steinhoff Investment Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1954/001893/06)
JSE Code: SHFF
STEINHOFF - UPDATE ON FORENSIC INVESTIGATION AND FINANCIAL REPORTING TIMELINE
Steinhoff International Holdings N.V. (the "Company") (together with its subsidiaries, the
The current year has been an extremely challenging one for the Steinhoff Group. In addition
to embarking on a comprehensive forensic investigation the Company has simultaneously
been involved in a complex international financial restructuring process involving a diverse
group of financial creditors while continuing to keep the global operations running across
more than 30 countries. The Group is today providing an update on the progress of the
forensic investigation and on the expected timetable to publish its audited Group financial
statements for 2017 and 2018.
The forensic investigation being undertaken by PwC has progressed well. The investigative
process has been significantly more complex than initially anticipated, with multiple work
streams operating across a number of jurisdictions. The investigation is substantially
complete but more time is required to finalise a number of follow up work streams. The
investigation is now expected to be complete by the end of February 2019, with the final
report being available to the Company shortly thereafter.
The Company anticipates providing the market with an overview of PwC's findings after it
has had time to review the full final report. This overview will ensure that the legally privileged
nature of the report is not undermined and its position in the various pending legal and
other proceedings is not jeopardized.
While significant progress has been made in a number of areas, the full implications of the
accumulated findings of the PwC report on the Group’s 2017 and 2018 financial statements
are still being analysed to ensure that the correct accounting treatment and related
disclosures are adopted. This aspect remains a very crucial and complex area.
Once the forensic report findings and the final accounting treatments are resolved by the
Group, the statutory auditors need to complete the outstanding audit processes for all of
the years involved in the build up to these financial statements.
Unfortunately, despite significant efforts being exerted by all parties, it is now clear that the
timeline for completing the Group consolidated financial reporting and audit process has
shifted and it will not be possible for all the work required to be finalised within the original
The Company now estimates that it will publish its Group audited financial statements for
2017 and 2018 by the middle of April 2019. The 2017 and 2018 financial statements for
Steinhoff Investment Holdings Ltd will be released shortly thereafter.
Chairperson Heather Sonn said:
"We sincerely regret this revision to the reporting timeline. While substantial progress has
been made, the volume and complexity of the work required, including the interactions
between the various parties, has been significantly greater than initially anticipated and
more time is needed for all parties involved to complete the outstanding tasks. I would like
to assure all stakeholders that we continue to approach these projects with maximum effort
and commitment as we seek to bring them to conclusion.
"In parallel, our financial restructuring continues to make good progress. Our recently
announced plans regarding the restructuring of the Group’s financial indebtedness are
significant milestones and will bring in a new period of financial stability for the Group. These
plans are unaffected by today’s announcement."
Shareholders and other investors in the Company are advised to exercise caution when
dealing in the securities of the Group.
JSE Sponsor: PSG Capital
Stellenbosch, 6 December 2018
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