Steinhoff's share price jumps by 50%

News24
27 Jan 2021, 23:12 GMT+10

Steinhoff's share price rocketed up by 50% on Tuesday, in the wake of a trading update by its European discount retail subsidiary the Pepco Group.

The group's shares, which opened at R1.58 a share on Tuesday morning, were changing hands at R2.38 by lunchtime.

Earlier in the week Steinhoff announced that it was reviving plans to list the discount retailer. These had been placed on hold last year due to the coronavirus pandemic.

The Pepco Group owns the PEPCO and Dealz brands in Europe, and Poundland in the United Kingdom.

In its Q1 trading update for 2021, the Pepco Group said it continued to "trade resiliently" while increasing its total number of stores in spite of the pandemic.

Its Q1 total revenue came in at €1 188, marginally up over the same quarter in 2020 (€1 143). Like-for-like revenue growth was -2.1%.

Meanwhile, the group ended the latest quarter with a total of 3 218 stores, compared with 2 809 in the at the end of the first quarter of 2020.

"Our revenue performance clearly signals the strength of each of our retail brands and customer offers and our resilience to short-term Covid disruption," said its Pepco's CEO, Andy Bond, in a statement.

While the Steinhoff's share price shot up to a multi-month high on Wednesday, its shares have still lost around 90% of their value since December of 2017, when the group's former CEO Markus Jooste abruptly quit at the start of a still ongoing accounting scandal.

Source: News24

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