29 March 2024, 06:23
By Furniture News Jul 02, 2018

Steinhoff's UK revenue down amidst accounting crisis fallout

Steinhoff International, which operates in the UK household goods market through Bensons for Beds and Harveys, has reported an unaudited operating loss of £31m across its UK retail and manufacturing operations over the six months to 31st March 2018.

Revenue dropped -6% YoY (just -3% at constant currency levels) to €339m, a LFL decline of -0.5%.

The group reports that a strong performance from Bensons during the period was offset by a decline in trading from loss-maker Harveys.

During the period, Bensons maintained margin, in-store customer conversion and online sales, despite trading from 13 fewer stores compared to the comparative period.

Various initiatives have now been implemented to help Harveys build profits without increasing its store footprint, including the establishment of a new senior leadership team, a new marketing campaign and brand message, an uplift in conversion rates, and a focus on efficiencies and cost savings.

Steinhoff’s UK household goods division also incurred one-off fees of €2m as a result of its parent company’s ongoing liquidity crisis.

PwC was appointed in December 2017 to conduct an independent investigation into financial irregularities at the group, and is on track to deliver a final report by the end of the 2018 calendar year. The group aims to release full-year audited group results for 2017 by the end of December 2018, and full-year audited group results for 2018 by the of end January 2019.

“It has been a challenging seven months for Steinhoff, its employees and stakeholders,” writes Heather Sonn, chairperson of Steinhoff’s supervisory board, at the start of the report. “The revelation of alleged accounting irregularities and the resignation of the former CEO has had a profound impact on the group.”

Steinhoff reports that it is finalising a restructuring plan with its creditors, in an effort to stabilise the business and its relationships with suppliers and customers.

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