Stefanutti Stocks Holdings Limited, a leading South African construction company, has released its reviewed condensed consolidated results for the 12 months ended February 28, 2023. The company’s financial report highlights progress made in its restructuring plan and notable improvements in its financial performance.
Under the leadership of the Chief Financial Officer, Y du Plessis, Stefanutti Stocks has been diligently working on a comprehensive Restructuring Plan, which has received approval from the company’s board of directors and lenders. The plan includes measures such as the sale of non-core assets, underutilized plant and equipment, and identified operations, as well as pursuing favorable outcomes for contractual claims and compensation events on certain projects.
Despite facing challenging market conditions, Stefanutti Stocks reported contract revenue of R6.0 billion from continuing operations, remaining consistent with the previous year’s figure. However, the company achieved a significant turnaround in operating profit, recording R101 million compared to a loss of R107 million in the previous year. This positive performance contributed to a profit for the period from total operations of R14.6 million, a notable improvement from the loss of R415.2 million in the prior year.
Earnings per share for total operations stood at 8.72 cents, contrasting with a loss per share of 248.27 cents in the previous year. Similarly, headline earnings per share for total operations were a loss of 38.73 cents, showing an improvement compared to the loss of 97.07 cents per share in the previous year.
The company’s order book remains robust, currently amounting to R6.8 billion, with R1.1 billion attributed to projects outside of South Africa. Stefanutti Stocks is optimistic about its future prospects, citing the current order book, imminent project awards, and the availability of short- and mid-term projects as key growth drivers.
Furthermore, the company emphasized its commitment to maintaining a strong focus on health and safety, with management and staff continually improving safety performance. Although there was a slight increase in the Lost Time Injury Frequency Rate (LTIFR) and Recordable Case Rate (RCR), Stefanutti Stocks remains dedicated to upholding its health and safety policies.
In light of the ongoing restructuring efforts and the need to bolster the company’s financial position, no dividend will be declared for the reporting period.
Stefanutti Stocks also provided an update on the Kusile power project, stating that progress continues to be made in pursuing contractual claims and compensation events. The company has received payments of R110 million thus far, with additional variations being negotiated with Eskom, which will determine further certification for measured works or referral to the Dispute Adjudication Board (DAB).
The group’s auditors, Mazars, reviewed the financial results and drew attention to the material uncertainty related to going concern. The company’s directors, however, expressed confidence in the Restructuring Plan and its ability to position the group for long-term growth.
Stefanutti Stocks’ full unaudited condensed consolidated announcement, including additional details and the auditor’s review, can be accessed on the company’s website.
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