Stefanutti Stocks says it expects to return to profitability when it reports its half-year financial results later in November.
The JSE-listed group had to restate the previous period’s results, having started a disposal programme in line with its restructuring plan that included selling some of the operations that were deemed discontinued.
The multidisciplinary contractor said it expected the disposals to be completed in the coming year, and so the comparative previous period’s results would be restated in line with International Financial Reporting Standards to reflect the ongoing and discontinued businesses.
In a statement released on Thursday, it said when taking the reclassification into account, it expected headline earnings per share for continuing operations to show a profit of 27.42c-29.76c per share, which would indicate an improvement of 335%-355% over the restated loss of 11.67c per share for the comparable previous period.
In total operations, which comprise continuing and discontinued operations, a profit of 11.21c-15.69c per share is expected to be reflected in headline profits per share, which would represent a 150%-170% improvement from a loss of 22.41c per share for the comparable prior quarter.
The firm is counting on a settlement of the lengthy contractual disputes related to the Kusile project, along with the effective execution of its restructuring plan and lender backing, to guarantee its turnaround.
Up 1.1% to R4.50 on Thursday, Stefanutti shares have surged 330% over the past six months.
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