Development

MBABANE - Stefanutti Stocks Holdings Limited, a construction firm operating in Eswatini and across Africa, is battling mounting liabilities and financial uncertainty despite reporting improved operational profits in 2025.

As of February 28, 2025, Stefanutti Stocks reported that its current liabilities exceeded current assets by E1.302 billion, up from E1.136 billion the previous year. Simultaneously, it recorded accumulated losses totalling E1.062 billion, a marginal improvement from E1.193 billion in 2024.

Partly reads the financials: “The loan provided by the lenders has assisted with the group’s liquidity, even though as at February 28, 2025, the group’s current liabilities exceed its current assets by E1. 302 billion (Feb 2024: E1.136 billion) and as of that date, had an accumulated loss of E1.062 billion (Feb 2024: E1.193 billion). The matters as noted above, including uncertainties surrounding the contingent liabilities as stated in note 26 of the group’s Consolidated Annual Financial Statements for the year ended February 28, 2025, continue to indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern, and as a consequence could impact on the group’s ability to realise its assets and discharge its liabilities in the ordinary course of business.”

Simplifying the above statement, a respected financial expert stated that the company (called ‘the group’) borrowed money from lenders to help it have enough cash to run its daily activities.

This, he referred to as supporting its ‘liquidity.’ However, as of February 28, 2025, the company still owed more money that it needs to pay soon (current liabilities) than it owns in assets that it can quickly turn into cash (current assets).  The difference is E1.302 billion.

Last year (February 2024), the difference was E1.136 billion, so the situation has gotten worse. The company has also lost a lot of money over the years (this is called an ‘accumulated loss’).

By February 2025, the financials indicate that the total losses were E1.062 billion, although last year it was slightly higher at E1.193 billion.

There are also other possible problems called ‘contingent liabilities’ (these are things that could end up costing the company more money in the future if certain events happen). This was stated by the expert.

The expert concluded that all these issues raised above meant it is not certain the company will be able to keep operating ‘normally’ in the future. This is called ‘going concern’.  “If the company can’t keep going, it might not be able to sell its assets or pay what it owes in the usual way,” the financial expert said.

The Chief Financial Officer, Yolanda du Plessis, raised a ‘going concern’ issue.

Full details can be found in today’s paper.

Stefanutti Stocks’ activities in Eswatini reportedly cover civil infrastructure and roads. It has also participated in several public and private sector construction projects in the kingdom. (Courtesy pics)