Steinhoff Investment swings into loss amid legal claims

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The company has made a R9.4bn provision for settlements in the wake of an accounting scandal

Steinhoff Investment Holdings, a subsidiary of Steinhoff International, has swung into a hefty first-half loss as it makes provision for possible legal settlements.

The company has made a R9.4bn provision for legal claims, which follows Steinhoff unveiling a settlement plan in July. Steinhoff Investment’s operating profit from continuing operations, after other material expenses, swung into a R10.5bn loss in its six months to end-March, from profit of R4.1bn previously.The group reported a headline loss per share of 23,716.3c, from headline earnings per share of 2,481.8c previously.

Steinhoff, whose shares have plunged more than 90% since it disclosed “accounting irregularities” in December 2017, uncovered a €6.5bn hole in its accounts in 2017, causing a share collapse and multiple lawsuits from former business partners and aggrieved shareholders, including former chair Christo Wiese.

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