Revenue increased marginally to 9.4 billion rand for the 12 Months Ended 28 February 2014 from 9 billion rand in the previous comparative year.
Operating profit however declined to 177 million rand from 219 million rand in February 2013.The operating margin also reduced from 2.4 per cent before Competition Commission penalty to 1.9 per cent.
[DATA SSK:Stefanutti Stocks] is a South African construction group that specialises in the construction of fixed infrastructure, municipal services, mining and industrial facilities, among others.
Earnings before interest, taxation, depreciation and amortisation decreased to 335.5 million rand for the period under review from 424.2 million rand in 2013.
Despite the marginal increase in revenue, the group’s order book strengthened and currently stands at R12.8 billion rand.
(READ MORE: Stefanutti pleased with current order book)
Capital expenditure for the year under review was 195 million rand from 237 million rand in 2013, which resulted in a reduced depreciation charge.
Earnings per share of 67.8 cents from 93.2 cents loss in 2013and diluted headline earnings per share of 59.2 cents from 89.2 cents loss increased by 173 per cent and 166 per cent respectively year-on-year.
After excluding the effect of the Competition Commission penalty in the previous year, however, normalised year-on-year headline earnings per share decreased by 28 per cent from 93.5 cents to 67.3 cents.
“The devaluation of the Rand during the year has had a positive effect on the translation of foreign operations, cash balances, equity accounted investees and investment property at year-end,” the group said in a statement.
Revenue for the group’s structures segment had a marginal year-on-year decrease of 2.6 billion rand from 2.7 billion rand in the previous year. The segment’s profit margins declined to 4.9 per cent from 5.2 per cent due to difficult market conditions.
While large government infrastructure projects and mining surface infrastructure work remain scarce in this division, the Marine, Civils and Civils KwaZulu-Natal divisions performed well.
Revenue for the group’s Roads, Pipelines & Mining Services improved to 2.4 billion rand from 2.3 billion rand in 2013.
The Building business unit delivered disappointing results with revenue of 3.1 billion rand from 3.2 billion rand in 2013, with an operating loss of 151 million rand from an operating loss of 55 million rand in the previous year.
Despite the loss, the group improved its safety performance once again achieving a disabling injury frequency rate of 0.16 from 0.18 last year.
“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,” the group explained.
“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.”