http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.34Change: -0.03
R/$ = 11.16Change: -0.08
Au 1215.89 $/ozChange: -1.14
Pt 1328.00 $/ozChange: -7.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Mar 15, 2013

Basil Read shares fall on earnings warning

Back
Construction|Civils|Roads|SIOC CDT Investment Holdings|TWP|TWP Holdings|WorleyParsons|Basil Read
Construction|Civils|Roads|TWP||
construction|civils|roads|sioc-cdt-investment-holdings|twp|twp-holdings|worleyparsons|basil-read
More Insight
© Reuse this



JSE-listed Basil Read’s share price fell by more than 9% on Friday morning as it warned that its earnings for the year ended December 31, 2012, would likely be between 215% and 225% lower than the previous comparable period.

Headline earnings for the year were predicted to be between 185% and 195% lower than in the previous financial year.

The group’s share price fell to a low of R10.75 in early morning trade, but recovered somewhat, trading at R10.99 by 15:30, down 7.26% on Thursday’s close of R11.85.

The group attributed its disappointing performance to several factors, including a nonrecurring noncash charge relating to a recently concluded broad-based black economic-empowerment transaction with SIOC CDT Investment Holdings for an amount of R60.5-million.

In addition, a noncash write-down of R27-million for development land relating to the group’s investment in the Rolling Hills Estate, in Mpumalanga, as well as a charge of R65-million raised in relation to the Competition Commission’s investigation into the construction industry, contributed to the contraction in margin.

“Moreover, difficult trading conditions, particularly in the construction sector, have led to the group incurring substantial losses on certain contracts,” the company said.

During the year, the group’s roads and civils business was challenged by labour unrest, unrealised production targets and unseasonal rain.

Meanwhile, despite having a signed settlement agreement and the receipt of a part payment relating to the outstanding amounts owing by the Free State Provincial Government (FSPG), Basil Read said it was still due payments totalling some R80-million.

“However, the FSPG has confirmed that the outstanding monies will be paid in the province’s next financial year and the group’s expectation is that this will be in May,” it reported.

The group’s order book remained steady at a level of R10.1-billion, adjusted for the sale of subsidiary TWP Holdings to WorleyParsons for a cash consideration of R900-million.

Meanwhile, a special dividend to shareholders for the period equating to R230-million had been approved, with the company declaring a special gross dividend of 175c a share, or 148.75c a share net of 15% dividend withholding tax.

The group’s full-year results would be published on or about March 27.

Edited by: Chanel de Bruyn
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Brian Molefe
Updated 2 hours 30 minutes ago The Mozambican port and rail authorities plan to invest around $3-billion in the coming few years to raise yearly throughput at the Maputo port to between 40-million and 50-million tons by 2020 and to migrate additional cargo from road to rail. Speaking at the...
Updated 4 hours ago A series of unfortunate events led to Johannesburg and surrounding areas experiencing significant water shortages over the past week, City of Johannesburg mayoral committee member for development planning and urban management Roslynn Greeff said at a media briefing...
Updated 5 hours ago Based on reports submitted to National Treasury, municipalities owe water boards some R2-billion, Cooperative Governance and Traditional Affairs Minister Pravin Gordhan revealed in a written response to a Parliamentary question on Monday. Municipalities in the Free...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
MANUFACTURING CAPABILITY Reliable Transformers designs and manufactures dry-type and oil-filled power and distribution transformers up to 3.5 MVA
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
GHAREEB SAAD Kaspersky Lab products contain strong heuristics engines that monitor suspicious file execution to detect attacks
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
MICHAEL FLETCHER Real-time information available to government when citizens use publicly funded Wi-Fi networks will enable it to communicate with citizens and provide services
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks