Stefanutti pleased with current order book - CNBC Africa

Stefanutti pleased with current order book


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Workers at a construction site. PHOTO: Getty Images

Revenue increased by two per cent to 4.9 billion rand from 4.7 billion rand in the previous year. Operating profit also increased to 114 million rand from 87.2 million rand in 2012.

The group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) were up one per cent to 195.3 million rand from 193.2 million rand.

“The group's results reflect an overall year-on-year improvement in most key performance areas, including profitability and growth in the order book,” the group said in a statement.

“A strong performance by the Roads, Pipelines & Mining Services (RPM) and Structures business units in particular served to offset the losses incurred in the Building business unit and Power division.”

[DATA SSK:Stefanutti] is a leading construction company that operates throughout South Africa, sub-Saharan Africa and the Middle East.

They deal in concrete structures, marine construction, piling and geotechnical services, all forms of building works including affordable housing, roads and Earthworks and others.

The group's order book currently stands at 11.7 billion rand from 8.5 billion rand in the previous year.

The group’s structures operations produced a steady performance for the first six months of the financial year with a slight decrease in revenue to 1.4 billion rand from 1.5 billion in August 2012.

Contract revenue for Stefanutti’s roads, pipelines & mining services segment was up by 5 per cent to 1.2 billion rand from 1.1 billion rand in the previous comparative year. Operating profit also increased 23 per cent to 95 million rand from 77 million rand in August 2012.

“Looking forward, the market is likely to remain competitive over the next twelve to eighteen months,” the group explained.

“A number of new projects in the transport and contract mining sector are expected to be awarded before financial year-end. On the back of previous successes, the business unit is actively pursuing further opportunities in sub-Saharan Africa.

The group’s building segment reported contract revenue for the first six months of 1.6 billion rand from 1.7 billion rand in August 2012. It also had an operating loss of 43 million rand from the previous comparative year’s operating loss of 29 million rand.

Contract revenue for the half year of the group’s mechanical, electrical & power segment was reported at 650 million rand from 449 million rand in the previous comparative year.

The order book at 31 August 2013 for the segment was 700 million rand from 473 million rand in February 2013.

With effect from 1 August 2013, the group acquired plant and equipment, intangible assets and liabilities relating to Energotec, the electrical and instrumentation business of First Strut (RF) Limited for a million rand.

“Whilst market conditions are expected to remain challenging, including the risk of continued labour volatility, there are sufficient mid-sized projects to maintain the current order book,” the group said.