Stefanutti Stocks Holdings Limited reported minimal growth as subdued conditions in the infrastructure market continue.
Their revenue increased marginally to R9.4 billion for the 12 months ended 28th February 2014, compared to R9 billion in the previous year.
Operating profit however declined to R177 million from R219 million in February 2013. The operating margin also reduced from 2.4 percent before Competition Commission penalty to 1.9 percent.
Stefanutti Stocks is one of South Africa's leading construction groups with over 12 000 employees and the capacity to deliver a range of projects of any scale to a multitude of clients in diverse markets. All South African operations are divisions of Stefanutti Stocks (Pty) Ltd, a Level Two B-BBEE contributor.
In his interview with Africa Outlook in March of this year, Tim Stow, General Manager of Stefanutti Stocks Botswana, said he was confident the company will come through the stagnant market, continuing to offer the same world class market leading quality construction they have become associated with.
"The industry as a whole has been affected by the Botswanan Government's reluctance to put more work into the public domain, whether in the form of short to medium projects or long term tenders. There is very little private sector work going on and even when a tender does arise, there is so many companies going for it that realistically it is very difficult to win that project." But there is potential light at the end of the tunnel as Mr Stow goes on to explain: "Of course every industry has lean spells, but it is how you cope with the lack of work that defines you as a company. We have had to tighten our belts and this will have an effect on what project we tender for but I believe that this spell will soon end. By June I think we will see more tenders and more projects becoming available. This will be good news to not just us but also to the Botswanan economy as a whole."
Despite the marginal increase in revenue, the group's order book strengthened and currently stands at R12.8 billion. "The devaluation of the Rand during the year has had a positive effect on the translation of foreign operations, cash balances, equity accounted investees and investment property at year-end," the group said in a statement.
Despite the loss, the group improved its safety performance once again achieving a disabling injury frequency rate of 0.16 from 0.18 last year.
"Despite the fact that the prevailing subdued conditions in the infrastructure market are expected to continue for the next twelve months, PRASA has just released its first two rail station upgrade tenders to the market, with more expected to follow," the group explained.
"With the historical problem contracts having been addressed in the respective business units, Stefanutti Stocks is now well placed to manage the current economic and market challenges."
Tim Stow is confident that the current market slump seen in construction in Southern Africa will soon change for the better and Stefanutti Stocks will be ready and waiting to undertake any and all projects they can.
You can read our interview with Tim Stow here: