Stefanutti Stocks expects up to 15% growth in headline earnings per share for six months ended 31 August 2015.
Stefanutti Stocks says its performance in the first 6 months of its financial year is in line with management's expectations.
Stefanutti reports a diluted headline loss of 86.17c per share for the year ended February 2013 compared with diluted headline earnings per share of 140.49c a year ago.
Construction company Stefanutti Stocks Holdings (SSK) on Tuesday reported a diluted headline loss of 86.17 cents per share for the year ended February 2013 compared with diluted headline earnings per share of 140.49 cents a year ago.
No final dividend was declared.
The results incorporate a R323m provision for a proposed penalty by competition authorities against the company regarding alleged anti-competitive behaviour.
Revenue rose by 17% to R9.4bn while operating profit declined by 35% to R234m. The company increased its an order book to R10bn from R9.3bn.
Stefanutti Stocks operates throughout South Africa sub-Saharan Africa and the Middle East.
The group\\\'s reviewed results reflect an overall year-on-year decline in profitability which was largely attributable to the depressed global and local economic conditions combined with delayed awards of private and public infrastructure investment projects loss-making contracts bad debts and protracted strike action in South Africa\\\'s construction and transport sectors.
Profitability across the group has remained depressed due to continued aggressive competition among contractors which has resulted in low-margin projects. In addition late payment by clients has adversely affected cash flows it said.
Despite the decline in profitability for the year the group\\\'s business fundamentals remain sound it added. Management actions have resulted in a much improved second half performance.
Market conditions in the South African construction market remain challenging and are expected to recover only in the medium to long term. In addition ongoing industrial action continues to pose a threat to the industry.
In the current market there is a reasonable amount of work available in medium-sized projects which will maintain the order book.
Future growth will depend on the general health of the global and local economy and future government capital expenditure.
The group is well-placed to manage the short-term economic challenges and position itself to optimise opportunities in the construction industry going forward it said.
Stefanutti Stocks falls as much as 6% after the construction group said its full-year profit to February is expected to be between 30% to 50% lower.
Stefanutti Stocks Holdings (SSK) fell as much as 6% on Monday after the construction group said its full year profit to February was expected to be between 30% to 50% lower from a year earlier period.
The earnings forecast excludes the provision for a yet-to-be determined penalty payable to the Competition Commission regarding current investigations into collusion claims.
At 3.43pm the stock was down 4.20% to R8.67 valuing the company at R1.630bn.