Stefanutti results reflect dire state of the construction sector
The sector has been all but crushed by a dearth of infrastructure spending since the 2010 Fifa World Cup
Financial results from construction group Stefanutti Stocks show once again how much stress the industry is under, and how urgently SA needs an infrastructure-build programme.
The sector has been all but crushed by a dearth of infrastructure spending since the 2010 Fifa World Cup, not to mention SA’s feeble economic growth rate and delayed payments from clients. To make matters worse, contractors have had to deal with major disruptions to projects by local communities.Earlier this year, Group Five joined a handful of its peers in business rescue proceedings after lenders pulled the plug on the former industry stalwart.Stefanutti said on Thursday that it needs more funding because an increase in delayed payments from clients has seen its cash balance fall. The group even mentioned a possible equity raise, even though its shares are trading at a fraction of their 2011 value.That said, Stefanutti has held up relatively well in the face of the onslaught on the industry. Its losses...