Stefanutti year end results – normalised HEPS decrease by 28%

From SENS

Stefanutti Stocks, a player in the construction industry has released its year end results for the period ended 28 February 2014. The R1.7 billion company is trading down 3.41% on the year, but has gained 2.56% on the day, on the back of its results.

Highlights

• Revenue R9,5 billion
• Operating profit R177 million
• Cash generated from operations R600 million
• Current order book R12,8 billion

Contract revenue of R9,4 billion increased marginally (Feb 2013: R9,0 billion). Operating profit declined to R177 million (Feb 2013: R219 million before Competition Commission penalty). The operating margin reduced from 2,4% (before Competition Commission penalty) to 1,9%.

The group posted an after-tax profit of R118 million (Feb 2013: R162 million loss after Competition Commission penalty).

Earnings per share of 67,8 cents (Feb 2013: 93,2 cents loss) and diluted headline earnings per share of 59,2 cents (Feb 2013: 89,2 cents loss) increased by 173% and 166% respectively year-on-year. However, after excluding the effect of the Competition Commission penalty in the previous year, normalised year-on-year headline earnings per share decreased by 28% from 93,5 cents to 67,3 cents.

Despite the fact that the prevailing subdued conditions in the infrastructure market are expected to continue for the next twelve months, PRASA has just released its first two rail station upgrade tenders to the market, with more expected to follow. Road projects locally and cross-border will continue to offer opportunities. The group's order book will be supported by medium-sized projects that continue to come to the marketplace.

With the historical problem contracts having been addressed in the respective business units, Stefanutti Stocks is now well placed to manage the current economic and market challenges. The group will continue to pursue opportunities for its multi-disciplinary services locally and in sub-Saharan Africa. It will maintain its focus on existing operations, but will explore new ventures and markets that arise on the back of existing client relationships.

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