Struggling Stefanutti jumps after reporting 'solid' operating profit

Shares of embattled construction group Stefanutti Stocks, whose total assets exceed its liabilities by R66 million, jumped almost a quarter at one point on Thursday, after it reported a return to operational profitability, as well as improved cash balance.

The company, valued at only R250 million on the JSE, reported "solid" operating profit of R101 million in its year to end-February, from a restated loss of R107 million previously, while it also managed to book an after-tax profit.

The company got a boost from a weaker rand, resulting in a R41 million profit from a currency loss of R34 million previously, while its abnormal legal fees just more than halved to R56 million. The company has also awarded almost R91 million in arbitration related to a mechanical project termination, which doesn't include an award for legal fees.