Stefanutti Stocks has reported an 8% increase in contract revenue to R7.7 billion for the year ended 28^th February 2025, with an improvement in the Group’s operating profit to R333 million from R210 million in FY2024. This includes a net recognition of R39 million relating to the settlement reached in respect of the Kalabo-Sikongo-Angola border gate road in Zambia.

CEO Russell Crawford says that the Zambian Court of Appeal ruled in favour of Stefanutti Stocks and its JV with the parties having agreed to a settlement amount. However, the repayment terms still need to be concluded.

Stefanutti’s current order book is R8.6 billion (February 2024: R8.4 billion) of which R1 billion (February 2024: R1.8 billion) arises from work outside of South Africa.

With reference to the Group’s restructuring plan, Crawford says that it has reached an agreement with its lenders to extend the capital repayment profile of its loan as well as its duration to 30^th June 2026. Capital repayments of R148 million were made during the year, reducing the loan to R849 million (February 2024: R997 million) with a reduction in interest paid for the year to R115 million (February 2024: R134 million).

Its disposal of SS-Construções (Moçambique) Limitada remains as held-for-sale with ongoing negotiations with the purchaser.

The Group’s inland region recorded an increase in contract revenue to R3.3 billion (February 2024: R3.1 billion) and an operating profit of R187 million (February 2024: R194 million) with its order book at February 2025 R3.1 billion (February 2024: R2.2 billion).

Its coastal region reported an increase in both contract revenue and operating profit to R2 billion (February 2024: R1.2 billion) and R65 million (February 2024: R20 million) respectively. The order book at February 2025 was R1.6 billion (February 2024: R2.2 billion).

The Group’s Western Cape operations reported a decrease in contract revenue to R882 million (February 2024: R1.1 billion) with a substantial increase in the operating profit to R73 million (February 2024: R37 million). The province’s order book at February 2025 was R2.7 billion (February 2024: R741 million).

The Group’s earnings and headline earnings per share for total operations improved to 76.80 cents per share (February 2024: 9.50 cents per share) and 109.36 cents per share (February 2024: a loss per share of 55.73 cents) respectively.

Crawford says that the group has experienced less disruption of unlawful activities by certain communities and informal business forums in several areas of South Africa and looking forward, Stefanutti Stocks remains committed to concluding its restructuring plan.