This was up from 939 million rand in 2013.
The South African construction company reported in the year ending June 2014, that revenue was also up by 8.4 per cent to 25.7 million rand from 23.7 million rand in the same period last year.
“Despite challenging conditions within certain sectors, the group’s construction divisions have delivered a credible performance,” reported [DATA WBO:Wilson Bayly Holmes-Ovcon] (WBHO) in a statement.
Operating since 1970, WHBO is divided into several operations namely, building and civil engineering; roads and earth works; its international stake in the Australian Probuild Constructions and its property operation amongst others.
The company’s building and civil engineering operation revenue grew by 7.2 per cent from 6.5 million rand in 2013 to seven million in the current period.
According to WHBO, “Despite the effects of difficult economic conditions on consumers’ disposable income, the retail sector remains resilient particularly in Gauteng with new developments under construction in the major city areas.”
The company’s roads and earthworks operation experienced a decrease in operating profit from 505 million rand in 2013 to 414 million rand in the current period.
According to WBHO, the decrease in this operation is in line with passive activity in the global mining sector which resulted in less projects. However, the roads operation is set to perform better in the next financial period, after securing a one billion rand bus rapid transport contract, reports the company.
Probuild, the company’s Australian holding grew its operating profit by two per cent from 12.1 million rand in the previous comparative period to 12.4 million rand in 2014.
The property development arm of WBHO saw an increase in operating profit from 10 million rand in 2013 to 28 million rand in current financial period.
Looking ahead at market trends, WBHO reports that, “The current strength within the local building market is expected to persist in the short to medium term. With demand at these levels the building division is able to be more selective in terms of the projects it undertakes. Margins have however reached industry norms and the scope for further enhancement is limited.”