Thursday, 13 November 2014 15:03

Stefanutti Stocks performance in line with management's expectations

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Stefanutti Stocks says its performance in the first 6 months of its financial year is in line with management's expectations.

Willie Meyburgh

The company reported a 30% rise in diluted headline earnings per share (HEPS) for the six months ended August 2014 to 44.41c. Revenue for the period grew 10% to R5.3bn‚ while operating profit was up 16% to R132m.

"We have made good progress on our stated recovery plan and the results therefrom are expected to continue improving the group's performance. Although the legacy loss-making projects in the building inland division are now behind us‚ the effects of finalising the unprofitable projects are still being felt‚" the company said.

The company said its order book was currently at R12.7bn with R5.1bn of that coming from work beyond SA's borders. Stefanutti Stocks operates in sub-Saharan Africa and the Middle East. The company has skills in the following areas: concrete structures; marine construction; piling and geotechnical services; roads and earthworks; bulk pipelines; mine residue disposal facilities; open pit contract mining; and all forms of building works.

Looking ahead‚ the company said the construction market was still under pressure and would remain so for the short to medium term. "With the lack of current large infrastructure projects‚ Stefanutti Stocks will continue to maintain its order book on the back of medium-sized projects and will continue to manage the current economic and market challenges.

"With management's continued commitment to its stated recovery plan‚ the group is confident that it is well placed to pursue opportunities for its multi-disciplinary services locally and in sub-Saharan Africa.

"Strategically‚ the group intends to focus on expanding its sub-Saharan Africa business beyond its current 40% order book‚" the company said. No interim dividend was declared.

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Murray & Roberts is South Africa’s leading engineering and construction services company. It has delivered infrastructure throughout South and Southern Africa for more than 110 years and is today recognised as an international engineering and construction…