https://www.engineeringnews.co.za

Basil Read returns to FY profitability

Basil Read returns to FY profitability

Photo by Duane Daws

30th March 2016

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

Font size: - +

JSE-listed Basil Read has turned its fortunes around, as it climbed back into the black during the financial year ended December 2015, despite a subdued construction sector and competitive tendering.

The company on Wednesday posted headline earnings per share (HEPS) of 120.28c for the 12 months to December, a significant turnaround on the headline loss per share (HLPS) of 362.08c in 2014.

This was in line with the group’s targeted HEPS of 120c.

HEPS from continuing operations reached 143.87c, compared with the HLPS of 298.08c in the prior year.

Overall, basic earnings per share (BEPS) of 137.27c were reported for the year under review, compared with the basic loss per share (BLPS) of 599.86c in 2014.

BEPS from continuing operations jumped to 152.78c, compared with the BLPS of 467.16c the year before.

“Decisive management action throughout the year to rightsize the business is producing significant benefits in terms of our strategic thrusts,” the company said in its financial results statement.

Profit after tax reached R171.2-million, compared with an after-tax loss of R820.9-million in the prior year, and above initial targets of R160-million.

Despite a 12% contraction in revenue to R5.5-billion during the year under review, revenue remained above the targeted R5-billion.

Basil Read’s order book remained steady at R10.7-billion during the year, with the company aiming to maintain the current level.

On the back of a difficult trading environment and the need to retain working capital, Basil Read decided not to declare a dividend for the year.

“In the short term, consensus expectations are that the industry will continue to face challenges, with margins under pressure and real liquidity pressures. In the long term, however, the infrastructure need in South Africa and the African continent as a whole should support growth in the sector,” the company said.

Edited by Creamer Media Reporter

Comments

Showroom

Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 
GreaseMax
GreaseMax

GreaseMax is a chemically operated automatic lubricator.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.13 0.185s - 150pq - 2rq
Subscribe Now