JSE-listed construction group Stefanutti Stocks has reported a significant year-on-year improvement in operating profit, from R210-million for the 2024 financial year to R333-million for the 12 months ended February 28, this year.

Presenting the company’s results on May 27, Stefanutti CEO Russell Crawford reported an 8% year-on-year increase in contract revenue to R7.7-billion. This included a net recognition of R39-million relating to the settlement reached in respect of the Kalabo-Sikongo-Angola border gate road, in Zambia.

Crawford explained that the Zambian Court of Appeal had ruled in favour of Stefanutti and its joint venture (JV) partners and that the parties had agreed to a settlement amount. However, the repayment terms still need to be concluded.

Earnings per share (EPS) and headline earnings per share for total operations improved significantly to 79c and R1.09 respectively, compared with EPS of 10c and a headline loss a share of 56c in the prior financial year.

Stefanutti reported that its current order book stood at R8.6-billion, compared with R8.4-billion as at February 29, 2024. Of the R8.6-billion order book, R1-billion originated from work beyond South Africa’s borders. This was down from R1.8-billion in the previous year.

With reference to the group’s restructuring plan, Crawford said the company had reached an agreement with its lenders to extend the capital repayment profile of the loan as well as its duration to June 30, 2026. He added that, looking forward, the group remained committed to concluding the restructuring plan.

Capital repayments of R148-million were made during the year, reducing the loan to R849-million, down from R997-million a year ago, with a reduction in interest paid for the year to R115-million from R134-million.

Further, Crawford said Stefanutti continued to pursue several contractual claims on the Kusile power project, a process that the company has been involved with since late 2018.

Meanwhile, the company’s disposal of SS-Construções (Moçambique) Limitada remains as held-for-sale. The buyer is renegotiating various aspects of the agreement, including the purchase price and payment terms.

Crawford said the group had experienced less disruption from unlawful activities by certain communities and informal business forums in several areas of South Africa.

In its operational review, Stefanutti reported that the inland region delivered a strong performance, with an increase in contract revenue to R3.3-billion from R3.1-billion a year ago, and an operating profit of R187-million compared with R194-million last year. The inland region’s order book at the end of February stood at R3.1-billion, up from R2.2-billion a year before.

The coastal region also showed a significant improvement, with contract revenue increasing to R2-billion from R1.2-billion a year ago, and operating profit rising to R65-million from R20-million in the prior financial year. The coastal region’s order book at the end of February was R1.6-billion, down from R2.2-billion last year.

In the Western Cape, contract revenue decreased to R882-million from R1.1-billion a year ago, while operating profit increased to R73-million from R37-million. The Western Cape’s order book at financial year-end stood at R2.7-billion, up from R741-million in 2024.

The contract revenue for the rest of Africa amounted to R1.5-billion compared with R1.6-billion a year ago, with an increase in operating profit to R92-million from R33-million. This included a R30-million operating loss relating to the Hyvec JV and a net recognition of the Kalabo settlement of R39-million.

The Africa region’s order book stood at R833-million at financial close, down from R1.7-billion in 2024.