Top-performing JSE-listed company in 2024 is technically insolvent
Stefanutti Stocks had a standout year in 2024, growing its share price by over 200% despite being technically insolvent.
Stefanutti Stocks is one of South Africa’s most prominent listed construction companies and focuses on infrastructure development projects.
It is known for doing projects of any scale and in any sector in the built environment across South Africa and neighbouring regions.
The company offers a diverse range of services, including building, civils, geotechnical, roads and earthworks, and electrical and instrumentation.
“Each of our disciplines can mobilise and operate across the country as well as cross-border, should contract opportunities arise,” the company said.
From 2020 to 2024, the company experienced challenges, partly due to a 2008 Eskom tender to work on the Kusile power plant.
The tender was a joint venture with other private construction companies working on Kusile.
The original contract was for six years, with a completion date of November 2016. The planned construction duration was 19,000 days.
However, there were consistent delays in completing the Kusile project due to site access and construction problems.
Independent experts, in conjunction with the Dispute Adjudication Board (DAB), found that the project experienced more than 75,000 days of delays.
Stefanutti claimed that Eskom interfered with its work in a way that was in breach of its original contract. This caused the project to progress much slower than expected.
Due to the delays, the company incurred significant prolongation costs and approached the DAB to assess Eskom’s claims.
The impact of the Eskom Kusile project took its toll on Stefanutti Stocks’ finances, clearly seen in its solvency.
It is under significant debt pressure, with its total liabilities exceeding its total assets for the first time in 2022, deeming the group technically insolvent.
A technically insolvent company cannot settle all its liabilities if all its assets are liquidated. This means drastic measures are needed to improve the balance sheet.
Its latest annual report showed that it remained technically insolvent, with its liabilities exceeding its assets by R52 million.
The good news is that Stefanutti Stocks’ negative equity has been improving, from R90 million in 2022 to R66 million in 2023 and R52 million in 2024.
Stefanutti Stocks’ great second half of 2024

Stefanutti Stocks was the top-performing South African company on the JSE in 2024, with its share price increasing by 217%.
Most of the share price growth occurred from June to September after the company expressed optimism about a positive outcome related to the Eskom contract.
Stefanutti Stocks submitted claims of R1.61 billion related to the Kusile contract. This excludes interest.
It expected the DAB to issue its binding decision during the third quarter of 2024. However, this did not happen, and the DAB’s decision is only expected in February 2025.
As the outcome of this process remains uncertain, the consolidated claims have not been recognised in its consolidated annual financial statements.
Another positive development for Stefanutti Stocks is that it has made good progress with its restructuring plan.
Stefanutti Stocks’ plan consists of disposing of non-core assets to repay its interest-bearing debt.
Despite the DAB’s delay, the market liked what it saw from the company, which resulted in the Stefanutti Stocks share price rallying by over 200%.
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