Stefanutti’s funding needs surge almost R600m amid Kusile woes
Construction and engineering firm Stefanutti Stocks, whose share price has lost about 97% of its value in 2019, said on Thursday its funding requirements had jumped to R986m as it continues to struggle to secure payments from its clients.
Stefanutti, which has a market capitalisation of only R22m, said in its six months to end-August it was pursuing a restructuring plan that could include the sale of noncore assets.
A report in the Daily Maverick has also suggested the company has been allegedly involved in payments to a slush fund for Eskom officials.
The group slumped into a R1bn loss during the period, from a profit of R104m previously. The company’s headline loss per share was 607.72c, from headline earnings of 60.30c previously.
Stefanutti said while it had initiated a dispute process with one of its clients “to pursue its contractual rights and recover the amounts owing to it”, this had placed an additional burden on the group, increasing the initial funding requirement of R400m to about R986m.
In July, Stefanutti said it had secured R120m in project funding. It said it had now received the second tranche of the R391m.
This funding had met the company’s short-term liquidity requirements and would and allow more time to resolve its contractual claims.