In providing context, I think the result for the six months ended 31 March 2018 has a glimmer of positivity – with one notable caveat, that Steinhoff can keep creditors on side and trade its way to solvency as the Board can’t keep selling assets. The solvency difficulty is demonstrated by the odd shape of the balance sheet, with current liabilities 90% of total liabilities excluding equity. Everything is crammed in to the short end, including trade payables and borrowings, making for a liquidity mismatch.
Featured company:Steinhoff [JSE:NPN]
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Wishing you profitable investing, until next time.
M N INGHAM