STEFANUTTI STOCKS HOLDINGS LIMITED - Update to shareholders

Update to shareholders

Stefanutti Stocks Holdings Limited
(Registration number 1996/003767/06)
Share code: SSK         ISIN: ZAE000123766
(“Stefanutti Stocks” or “the company” or “the group”)


UPDATE TO SHAREHOLDERS


The board of Stefanutti Stocks hereby provides shareholders with an update on the following two
issues as reported in the Reviewed Condensed Consolidated Results of Stefanutti Stocks for the 12
months ended 28 February 2019 (Results):


1.    Funding Plan update


      As outlined in the Results, the group is pursuing raising funding through the Funding Plan as a
      result of short-term liquidity pressure. Shareholders are advised that R120 million has been
      received by the group as specific ring-fenced project funding through the first component of the
      Funding Plan. Further projects are being evaluated to raise additional ring-fenced project
      funding as part of the Funding Plan. The remaining aspects of the Funding Plan are also being
      separately pursued in the manner envisaged in the Funding Plan, and shareholders will be
      advised accordingly.


2.    Dispute Adjudication Board (DAB) ruling


      With respect to the large public sector power project in which the group is in dispute with the
      relevant client (employer), a ruling has been received from the DAB relating to the group's (as
      contractor) ongoing funding of the Preliminary & General (P&G) costs (prolongation costs).


      The DAB found that the employer’s interferences with the engineer's determinations was a
      breach of the relevant contract, and consequently the DAB set aside the engineer’s nil returns
      for prolongation costs for the months of December 2018 to February 2019. The DAB did not
      grant the order for payment sought by the contractor but ruled that the monthly claims are to be
      returned to the engineer for its fair determination in accordance with the terms of the contract.


      On the basis of the ruling by the DAB, which requires the engineer to fairly determine the
      amounts due to the contractor, the group will continue to pursue payment of prolongation costs
      for December 2018 to February 2019 and for the period post February 2019.


      The group continues to deal with this specific matter whilst also pursuing its other contractual
      entitlements with respect to other claims and/or compensation events in terms of the claim and
      dispute resolution processes set out in the relevant contract.
In addition, shareholders are advised that, the group’s order book at the end of June 2019 was
R12,6 billion.




26 July 2019
Johannesburg
Sponsor: Bridge Capital Advisors Proprietary Limited

Date: 26/07/2019 09:44:00
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