Stefanutti shoots up more than 9% following interim results

Stefanutti stock climb more than 9% in morning trade following the release of its interim results.

In the six months to end August 2015‚ the diversified construction and engineering group reported revenue of R5.3bn‚ unchanged from the year-earlier period.

Operating profit grew 8% to R176m while headline earnings per share (HEPS) rose to 45.07c from 44.41c in the year-earlier period. No interim dividend was declared.

“The board of directors is pleased to report that overall‚ the group has produced a satisfactory performance‚ despite the extremely challenging trading environment‚” the company said.

“Management regularly reviews and aligns each business unit and its respective divisions with the changes being experienced in their particular markets to ensure their ongoing sustainability‚” said Stefanutti.

Stefanutti Stocks operates in SA‚ sub-Saharan Africa and the Middle East. Its multidisciplinary expertise includes concrete structures‚ piling and geotechnical services‚ roads and earthworks‚ bulk pipelines‚ open-cast contract mining and affordable housing.

The group’s order book‚ consisting of mainly medium-sized projects‚ is currently R12.5bn of which R4.2bn arises from work beyond SA’s borders.

Looking ahead‚ the company said conditions would remain “extremely challenging” amid subdued business confidence in the private sector and reduced capital expenditure in the government sector.

“The high levels of competition for available work may negatively impact operating profit margins..... But there remains potential growth in certain sectors of the economy.

“The group continues to look for opportunities both in southern Africa and on a more selective basis further afield in sub-Saharan Africa‚” the company said.

At 9.45am‚ Stefanutti was up 9.25% to R5.08‚ valuing the company at about R875m.