Stefanutti Stocks slips deeper into the red as impairments weigh
Stefanutti Stocks registered a grim result for the year ended February 2018, with a loss that exceeds the group’s market capitalisation of about R461m, but not everyone is depressed. This comes after a loss of R161m in financial 2017, amid the realities of "operating within a demanding trading environment", including an impairment of assets of R667m. This came mainly from goodwill that arose from the R1.1bn Stocks Limited buyout in 2008 when construction markets were booming. Stocks Limited has a footprint across Southern Africa to the United Arab Emirates. It specialises in building hospitals, hotels, factories, offices, shopping centres, airport facilities and housing. However, the parent group has toughed it out since 2013, making modest profits in half of the years since. "Unexciting results due to very tough conditions, but looking sufficiently robust to thrive if and when infrastructural spending and economic growth recur," Stephen Meintjes, head of research at Momentum Securi...
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