JSE-listed Stefanutti Stocks has reported a stronger interim performance for the six months to August 31, supported by improved profitability and a sharply higher order book of R13.4-billion.

The multidisciplinary contractor posted contract revenue of R3.7-billion from continuing operations, slightly higher than the R3.6-billion recorded for the six months to August 31, 2024.

Operating profit rose to R161-million from R132-million in the prior comparable period, with earnings before interest, taxes, depreciation and amortisation having increased to R232-million from R166-million in the prior comparable period.

Earnings a share for total operations climbed to 28.96c, from 1.71c in the prior comparable period, while headline earnings a share rose to 34.54c from 13.23c. Cash on hand at period-end amounted to R336-million.

Stefanutti CEO Russell Crawford said on November 25 that the group’s order book had expanded significantly from R8.6-billion in February. Of the current R13.4-billion pipeline, R4.2-billion came from projects outside South Africa and R10.3-billion related to work planned beyond February next year.

He also confirmed the completion of a major shift in the company’s funding structure. Stefanutti’s main operating subsidiary had secured a new five-year term facility of R850-million with Standard Bank, enabling the group to settle its historic loan on October 31 and conclude its restructuring plan.

The new facility will be repaid in 19 equal quarterly instalments from February 2026 to August 2030.

A key development during the reporting period involved long-standing disputes with State-owned utility Eskom. The Dispute Adjudication Board awarded Stefanutti R685-million on Claim 5, but Eskom signalled its intention to have the award set aside. This triggered settlement discussions, which led to a full and final agreement on November 24 for R580-million. Eskom must pay the full amount by December 12, Stefanutti said.

Under its facility with Standard Bank, the company will apply at least 80% of the settlement proceeds to the loan by the end of February 2026.

Crawford added that the disposal of the Stefanutti Stocks Mozambique business remained on track, with $4.5-million of the purchase price still outstanding and due by the end of December.

OPERATIONAL PERFORMANCE

The company said the inland region delivered the strongest contribution during the period under review, lifting contract revenue to R2-billion from R1.5-billion and increasing operating profit to R153-million from R81-million. Its order book remained healthy at R4.5-billion.

The coastal region reported contract revenue of R827-million, compared with R1-billion a year earlier, but still managed to grow operating profit to R44-million from R33-million. Its order book stood at R1.6-billion at the end of August.

In the Western Cape, contract revenue came in at R378-million, slightly lower than the R427-million recorded previously, with operating profit of R20-million compared with R31-million in the prior comparable period. Despite delays in project awards, the region’s order book rose sharply to R3.4-billion.

The broader Africa region faced the toughest trading conditions, with contract revenue declining to R412-million from R722-million. The delays in awarding new work resulted in an operating loss of R7-million, compared with a R37-million profit a year earlier, although the region’s order book expanded significantly to R3.7-billion.