Investec profits could fall 3pc after scandal at Poundland owner Steinhoff

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The owner of Mattress Firm in the United States and Poundland in the UK needs a lifeline after its stock plunged last week when it delayed publication of its financial results because of possible accounting irregularities that prompted the resignation of its chief executive officer.

Investec has warned that its exposure to Poundland's South African owner, Steinhoff, could damage profits. "Thus, any one particular exposure would represent a small portion of the group's total credit and counterparty exposures, as is the case with the group's exposure to Steinhoff".

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

Steinhoff, which is listed in both Johannesburg and Frankfurt, said last Wednesday that its chief executive Markus Jooste had resigned, sending its shares plunging and knocking more than US$10.00bn off its market value.

- Gigaba to investigate the possible violation of financial regulatory provisions by the PIC, SARS and the auditors, Deloitte, that audited Steinhoff financial reports for 2015/ 2016 and report them to their council or association and the Independent Regulatory Board for Auditors (IRBA).

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Steinhoff used debt to fund an acquisition strategy that turned it from a South African furniture group to an worldwide retail empire including brands such as Poundland in Britain and Mattress Firm in the United States.

As well as Poundland, which it acquired a year ago for £610m, Steinhoff is the parent firm of Harveys and Bensons For Beds.

Wiese controls New Look through his investment firm Brait.

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