Belfast Telegraph

Investec issues warning over Steinhoff unrest

By Ravender Sembhy

Investec has warned that its exposure to Poundland's South African owner, Steinhoff, could dent profits.

Shares in Steinhoff tanked last week with the firm's chief executive quitting amid an investigation into accounting irregularities.

Investec said its exposure represents a "small portion of the group's balance sheet" and it is not "expecting to suffer any losses".

However, it added: "Investec Bank Limited (South Africa) does have certain derivative exposures linked to the Steinhoff share price, where a trading loss could materialise.

"The loss could be zero but the maximum potential loss could be approximately 3% of the Investec group's post-tax operating profit."

Last week Steinhoff announced that Markus Jooste will resign with immediate effect, adding that information has come to light which "relates to accounting irregularities requiring further investigation". Accountancy giant PwC is to carry out an independent investigation.

Belfast Telegraph

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