Steinhoff Shares Jump After Pepkor Europe's Trading Update

By Donna Ahern
Steinhoff Shares Jump After Pepkor Europe's Trading Update

Shares in Steinhoff rose more than 20% on Wednesday, on track for their biggest daily gain in nearly a month, after the company's Pepkor Europe business reported a jump in annual revenue growth.

Pepkor, which owns discount retailers Poundland and Dealz as well as clothing and accessories chain PEPCO, said revenue rose 10.6% to just above €3 billion ($3 billion) in the year to the end of September. In the final quarter revenue grew strongly by 12.9% to €781 million.

Progress was helped by Poundland's return to like-for-like growth and strong like-for-like growth in PEPCO, one of the largest non-food retail chains in central and eastern Europe.

At 14.15 GMT, shares in Steinhoff were up 17.65% to 1.80 rand.

Steinhoff, whose brands also include France's Conforama, admitted last December to 'accounting irregularities', sending its shares plunging and leaving it fighting for survival.

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Shares in the company remain volatile. They had lost a fifth of their value last week when the company said a probe into the accounting issues and the release of restated results have been delayed.

News by Reuters, edited by Checkout. Click subscribe to sign up for the Checkout print edition.

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