JSE-listed Stefanutti Stocks says it has reached an agreement with the City of Cape Town regarding a civil claim against it, as well as fellow contractors WBHO Construction and Aveng Africa, in relation to the construction of the Green Point Stadium.
Although the parties remain confident of their respective legal positions, they have mutually agreed that it is in the best interests of all to amicably settle the matter rather than prolong an extended and costly arbitration and court process.
This will allow for future positive engagements between the City of Cape Town and the contractors, Stefanutti says.
The settlement includes a yearly payment of R10.5-million by each contractor over the next three years, and a commitment to corporate social investment projects in the Cape Town district by WBHO Construction and Stefanutti.
Further, Stefanutti has advised shareholders that it expects to report a loss a share, for continuing operations, of between 150c and 180c and a headline loss a share of between 60c and 90c for the financial year ended February 28.
In line with a restructuring plan, the group initiated a disposal programme to include the sale of certain operations, which have accordingly been classified as discontinued operations.
These disposals are expected to be concluded within the next 12 months.
Consequently, the results for the 2021 financial year will be restated to reflect continuing and discontinued operations in accordance with International Financial Reporting Standards.
The restated results for the 2021 financial year will reflect a loss a share of 141.36c and a headline loss a share of 121.87c for continuing operations.
Further, Stefanutti expects to report a loss a share for continuing and discontinued operations of between 245c and 275c for the 2022 financial year and a headline loss a share for continuing and discontinued operations of between 80c and 110c.
This compares with a restated loss a share for continuing and discontinued operations of 171.62c and a restated headline loss a share for continuing and discontinued operations of 155.13c for the 2021 financial year.
Stefanutti will publish its results on May 26.