Stefanutti lifts profit despite lag in tenders
CEO Willie Meyburgh says infrastructure markets in SA are ‘extremely competitive’ with a shortage of work for contractors
JSE-listed construction company Stefanutti Stocks reported an improvement in operating profit in the six months ended August, despite "a challenging trading environment". Operating profit rose from R100m previously to R119m for the period, with the operating profit margin remaining consistent at 2.3%. But the increase was offset by a rise in the effective tax rate and minority shareholders’ interest. This resulted in a fall in earnings and headline earnings per share of 15% from the same period in 2016. Infrastructure markets in SA were "extremely competitive" and there was a shortage of work for contractors, CEO Willie Meyburgh said. There was little infrastructure spend from the private and public sector, which puts pressure on margins, he said. This was despite substantial building work completed in Sandton. Contract revenue from operations rose to R5.2bn in the period compared to the same period in 2016.
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