WBHO records muted results - CNBC Africa

WBHO records muted results

Earnings

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A crane on a construction site. PHOTO: Getty Images

Revenue was up 11.3 per cent to 13.3 billion rand from 12 billion rand, and operating profit was also down 15.1 per cent from 550.6 million rand to 437.4 million rand.

Headline earnings were also reportedly down 20.4 per cent, and profit before taxation was down from 596.5 million rand in 2012 to 477.8 million rand.

“Subdued mining activity is impacting both the Civil engineering and Roads and earthworks divisions with no new significant awards in this sector since 30 June 2013,”said Wilson Bayly Holmes-Ovcon (WBHO) regarding their Africa operations.

WBHO is a South Africa-based building and civil engineering construction company. It has operations in South Africa, Australia, Mozambique and Sierra Leone, among others.

“Locally [in South Africa], the strong building market in Gauteng continues to provide various opportunities in the short term, while the recent award of the new Nedbank offices in KZN has filled the order book in that region.”

Earnings per share for [DATA WBO:WBHO] were recorded at 548 cents from 684 cents in the previous year.

Headline earnings per share were recorded at 586.4 cents from 736.3 cents in 2012, and an interim dividend of 135 cents per share has been declared.

The Building and civil engineering division achieved moderate growth despite the effects of a three week strike in August,” the company explained.

Revenue for this segment was recorded at 3.5 billion rand, a moderate increase from 3.1 billion rand in 2012.

Revenue from the Roads and earthworks division, which decreased from 2.6 billion rand in 2012 to 2.5 billion rand, occurred in the absence of an anchor project in West Africa, which also hampered the division’s profitability.

“Revenue from the group’s Australia segment Probuild decreased by 6 per cent in dollar terms in the six months to 31 December 2013, however, this was fully offset by a solid performance from WBHO Civil which grew revenue by 67 per cent,” the company added.

WBHO’s building division continues to prosper, with a number of projects in the pipeline including the constructing six shopping centres in the Gauteng, Johannesburg region as well as two mixed developments.

“Locally, the strong building market in Gauteng continues to provide various opportunities in the short term, while the recent award of the new Nedbank offices in KZN has filled the order book in that region,” said the company.

“WBHO Civil has a strong book till the end of the financial year, but its future order book is impacted by reduced mining spend in Australia.”

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