Corporate restructuring specialist Metis Strategic Advisors has announced the successful completion of a four-year mandate to stabilise and restructure JSE-listed construction group Stefanutti Stocks (StefStocks).

This milestone marks the conclusion of a comprehensive operational and balance sheet turnaround that has restored the company to financial health, Metis points out.

StefStocks was operating with severe working capital constraints in the latter half of 2019, with a key part being the dispute with its client State-owned entity Eskom over the recovery of money for services rendered at the Kusile power station.

The share price of StefStocks on the JSE had fallen during 2019 from R3.60 at the beginning of the year to 13c in December 2019.

Metis was appointed by the board of StefStocks to act as chief restructuring advisers to the group in late 2019.

Shortly after this, both external economic and internal company circumstances fundamentally deteriorated as a result of the Covid-19 crisis, exacerbating the issues facing StefStocks, Metis explains.

It avers that the early intervention in appointing restructuring advisers prevented StefStocks from going into business rescue or liquidation.

The immediate role of Metis was to facilitate the raising of crucial working capital.

Having done so, Metis undertook an assessment of the business and, working with the management team, formulated and presented a comprehensive restructuring plan for the StefStocks group of companies to both the board and the group’s external funders, it highlights.

Once approved by both, Metis and the management team collectively executed, monitored and reported to stakeholders on the implementation of the restructuring plan.

Critical to the restructuring exercise was ensuring the group maintained its solvency throughout the period that the restructuring plan was being implemented, and for Metis to act as the bridge to sustain the working relationship between StefStocks and its funders.

The restructuring plan, which was updated on a number occasions as circumstances evolved over time, included: extending the repayment date for existing bank facilities; raising additional funding on a few occasions; assisting StefStocks to significantly reduce overhead costs and therefore improve its ongoing profitability; the sale of noncore assets and operations; winding down non-profitable businesses; and programmes to drive the recovery and collection of outstanding claims owing to StefStocks.

A key recent development in the company’s favour was a settlement agreement signed between StefStocks and Eskom on November 24, which will see the latter paying R580-million for work done at the Kusile power station.

The final critical milestone of the restructuring plan was the conclusion of the remaining conditions attached to StefStocks' facility arrangements with financial institution Standard Bank.

These requirements were fulfilled with the company concluding a new R850-million facility agreement with the bank in October to settle its current loans with lenders.

This means that all elements of the restructuring plan have been met, enabling the company and its funders to formally terminate the restructuring plan.

StefStocks has 6 336 employees across its operations, including 4 473 South African staff, and pays more than R2-billion yearly in wages, Metis points out, adding that this scale underscores the socioeconomic importance of the company’s continued stability.

Moreover, in the 2025 financial year, the group generated R7.7-billion in contract revenue, secured an order book of R8.6-billion and reinvested R452-million in capital expenditure to support project execution across renewable energy, water and wastewater treatment, transport infrastructure, mining services and data centres.

Also, the group generated R3.7-billion in contract revenue for the six months to August 31, with an operating profit of R161-million. The current order book has grown to R13.4-billion, Metis highlights.

“We were appointed at a time when decisive action was needed, and the results speak for themselves. Working closely with the management team, we were able to restore stability, strengthen the balance sheet and position StefStocks for sustained performance.

“It’s been a focused, collaborative effort and we’re pleased to see the business on such a strong footing today,” says Metis director Dave Lake.

The success of the Metis-driven interventions is also evidenced in the near fortyfold uplift in the company’s JSE share price from the 13c when Metis was appointed to its current about R5 trading level, Metis posits.

“Metis played a pivotal role at a critical moment for our business. Their restructuring plan and guidance helped stabilise the group, protect jobs and give us the platform to move forward with confidence. We appreciate their partnership and the clarity they brought throughout the process,” says StefStocks CEO Russell Crawford.