STEFANUTTI STOCKS HOLDINGS LIMITED - Reviewed Condensed Consolidated Results

Reviewed Condensed Consolidated Results

STEFANUTTI STOCKS HOLDINGS LIMITED
("Stefanutti Stocks" or "the company" or "the group")
(Registration number: 1996/003767/06)
(Share code: SSK ISIN: ZAE000123766)
(Main Board - General Segment)

FINANCIAL RESULTS - REVIEWED CONDENSED CONSOLIDATED RESULTS FOR THE 12 MONTHS ENDED 28 FEBRUARY 2026

                                                                                   REVIEWED         AUDITED
                                                                                28 FEBRUARY     28 FEBRUARY          %
                                                                                       2026            2025     CHANGE

Contract revenue - Continuing operations                            (R'000)       7 839 869       7 657 091          2
Operating profit before investment income - Continuing operations   (R'000)         689 062         333 370        107
Profit for the year - Continuing operations                         (R'000)         632 199         209 001        202
Loss for the year - Discontinued operations                         (R'000)         (12 658)        (77 547)        84
Profit for the year - Total operations                              (R'000)         619 541         131 454        371
Earnings per share - Total operations                               (cents)          370,44           78,60        371
Headline earnings per share - Total operations                      (cents)          359,26          109,36        229

AUDITORS' REVIEW
The reviewed condensed consolidated results for the year ended 28 February 2026 have been reviewed by the group's 
auditors, Forvis Mazars. Their unmodified review conclusion is included in the full announcement which is available 
on the company's website on the following link: 
https://stefanuttistocks.com/investors/reviewed-condensed-consolidated-results-feb-2026/.

RESTRUCTURING PLAN UPDATE
The group hereby provides shareholders with an update on the Restructuring Plan as reported in the Unaudited 
Condensed Consolidated results for the six months ended 31 August 2025, issued on 25 November 2025 and the
SENS announcements issued on 9 December 2025, 12 December 2025 and 3 February 2026.

Shareholders were previously advised that the Lenders extended the capital repayment profile of the current loan 
as well as its duration to 30 June 2026. 

The group, through its primary operating subsidiary, concluded a new five-year term facility of R850 million 
with The Standard Bank of South Africa Limited ("the Facility").

The Facility replaced the current loan, which was fully settled on 31 October 2025, thereby terminating the historic 
lender arrangements and the Restructuring Plan.

The new Facility bears interest at the equivalent of the three-month Johannesburg Interbank Average Rate ("JIBAR") 
or equivalent rate, plus a margin of 3.50% compounded quarterly and will be repaid in 19 equal quarterly instalments 
from February 2026 to August 2030, following an initial interest-only payment of R6,7 million in November 2025.

Funds received from the settlement on the Kusile Power Project and proceeds from the disposal of SS-Construcoes 
(Mocambique) Limitada (SS Mozambique), less associated costs and working capital requirements, have been utilised 
to make capital prepayments of R620 million, together with the first instalment of R16,8 million
(capital portion R7,5 million), thereby reducing the outstanding capital of the Facility from R850 million 
to R223 million. Interest on the Facility (including the historical loan) amounts to R80 million 
(Feb 2025: R115 million) for the financial year.

The Facility is partially supported by financial guarantees provided by the group's guarantee providers. In addition, 
the Facility is secured through customary security arrangements and includes standard covenant requirements 
that are typical for agreements of this nature. After year-end, the guarantee providers were released from their 
obligations under the Facility.

As at 28 February 2026, the financial covenants for the Facility were met.

KUSILE POWER PROJECT SUMMARY
As previously communicated to shareholders, Stefanutti Stocks continued to pursue its contractual claims on 
the Kusile power project with Eskom.

Since August 2021, the group has secured payments totalling R132 million for measured work and Dispute 
Adjudication Board ("DAB") rulings.

In terms of the "Interim Arrangement" entered into with Eskom in February 2020, for the Purposes of Agreeing or 
Determining the Contractor's Claims and Facilitating the Dispute Resolution Process relating to Claim 5 
(delay events up to 31 December 2019), the DAB issued its Sub-clause 20.4 decision on 17 October 2025, awarding 
Stefanutti Stocks R685 million (excluding VAT).

Both parties had the right to refer the decision to arbitration, however, in terms of the Contract, the decision 
was binding and enforceable unless revised by amicable settlement or an arbitral award.

Eskom issued a notice of dissatisfaction and indicated that they intended to have the award set aside in totality 
by the High Court of South Africa. If successful, Claim 5 would be referred to arbitration, thereby recommencing
the entire claims process.

The group submitted Claim 6, for delay events after December 2019 in May 2025, through the contractual process. 
Eskom also submitted its delay damages claim for late completion, which Stefanutti Stocks would have defended through 
the contractual process. Should Claim 6 and/or the delay damages claim have failed in the contractual process, either 
would be referred to the DAB for resolution.

The Contract provided for amicable settlement prior to the commencement of an arbitration process. Consequently, 
after careful deliberation, the Board of Stefanutti Stocks considered it appropriate to approach Eskom with a view
of reaching a settlement with respect to Claim 5, Claim 6 and Eskom's delay damages claim for late completion.

Stefanutti Stocks and Eskom on 24 November 2025 signed a full and final settlement agreement for an amount of 
R580 million (excluding VAT) (Settlement Amount), which constitutes a mutual release of any and all actual or potential 
claims, disputes or entitlements either party may have against the other arising or in connection with the Contract.

The Settlement Amount of R580 million (excluding VAT) has been received and a prepayment was made towards the 
Standard Bank Facility.

The recognition of the Settlement Amount increased contract revenue by R448 million, operating profit by R388 million 
and investment income by R132 million. The profit after tax relating to the Settlement Amount is R492 million.

GOING CONCERN
The directors believe that the group has adequate financial resources to continue in operation for the foreseeable 
future and accordingly consider it appropriate that the group's results for the year be prepared on the going-concern 
basis. This takes into consideration the group's financial performance, financial position, current order book, 
operations profitably executing the group's order book and forecast cash flows.

The group delivered a strong performance in the current and prior two financial years, with consistent profitability 
and positive operating cash flows. Furthermore, the conclusion of the restructuring plan and the settlement of the 
Kusile Power Project contributed to the group's net current liability position improving, compared to the prior year.

As at 28 February 2026, the group's current liabilities exceeded its current assets by R133 million 
(Feb 2025: R1 302 million) and as of that date, had an accumulated loss of R386 million (Feb 2025: R1 062 million).

OVERVIEW OF RESULTS
Continuing operations
Contract revenue and operating profit before investment income increased to R7,8 billion (Feb 2025: R7,7 billion) 
and R689 million (Feb 2025: R333 million) respectively, due to the recognition of the Kusile Power Project settlement,
which contributed R448 million to contract revenue and R388 million to operating profit.

Earnings before interest, tax, depreciation and amortisation ("EBITDA") improved to R852 million from R428 million 
for the comparative period including R388 million relating to the Kusile Power Project settlement.

Contract revenue and operating profit on a normalised basis (excluding the effects of the Kusile Power Project 
settlement and the impairment of land and buildings of R27 million) is R7,4 billion and R328 million respectively, 
with an EBITDA of R464 million.

Profit for the year for total operations increased to R620 million, which includes R492 million relating to the 
Kusile Power Project settlement, compared to R131 million for the comparative period.

Earnings and headline earnings per share for total operations improved to 370,44 cents (Feb 2025: 78,60 cents) 
and 359,26 cents (Feb 2025: 109,36 cents) respectively.

The group's current order book is R17,2 billion (Feb 2025: R8,6 billion) of which R6,0 billion (Feb 2025: R1,0 billion) 
arises from work beyond South Africa's borders and R8,5 billion (Feb 2025: R3,6 billion) for periods beyond
February 2027.

Safety
Management and staff remain committed to the group's health and safety policies and procedures and together strive 
to constantly improve the group's safety performance. The group's Lost Time Injury Frequency Rate at 28 February 2026 
was 0,06 (Feb 2025: 0,08) and the Recordable Case Rate was 0,26 (Feb 2025: 0,29).

Broad-Based Black Economic Empowerment (B-BBEE)
The group is a level 1 B-BBEE contributor measured in terms of the Construction Sector scorecard with a Black Ownership 
score of 55,12%.

Industry-related matters
The group has experienced less disruption of unlawful activities by certain communities and informal business 
forums in several areas of South Africa.

Dividend declaration
The dividend policy is to consider the declaration of dividends based on the group's profitability, cash flow generation, 
capital requirements, funding obligations and overall financial position. The declaration of dividends remains subject 
to the Board's discretion and compliance with applicable legal and regulatory requirements.

Notice is hereby given that no dividend will be declared (Feb 2025: Nil).

Subsequent events
Other than the matters noted herein, there are no other material reportable events which occurred between the reporting 
date and the date of this announcement.

Further information
These results have been compiled under the supervision of the Chief Financial Officer, Y du Plessis, CA(SA).

This announcement is an extract of the full reviewed condensed consolidated announcement. This extract has not been 
reviewed by the auditors. This extract, which is the responsibility of the directors, does not contain full or complete
details and any investment decision by investors and/or shareholders should be based on the consideration of the 
full announcement, the webcast together with the investor presentation which is available on the company's 
website at www.stefstocks.com.

The full announcement is available for inspection, at no charge at the registered office of the company and at the 
office of Bridge Capital Advisors (Pty) Ltd, during normal business hours. Copies of the full announcement may also be 
requested by contacting the company secretary, William Somerville at w.somerville@mweb.co.za.

The full announcement is also available at https://senspdf.jse.co.za/documents/2026/jse/isse/ssk/FY2026.pdf 
and https://stefanuttistocks.com/investors/reviewed-condensed-consolidated-results-feb-2026/

Published on 26 May 2026
Corporate advisor and sponsor
Bridge Capital Advisors Proprietary Limited
10 Eastwood Road, Dunkeld, 2196
(PO Box 651010, Benmore, 2010)



Date: 26-05-2026 07:05:00
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