http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.48Change: 0.11
R/$ = 10.49Change: 0.06
Au 1286.74 $/ozChange: -8.83
Pt 1402.00 $/ozChange: -26.50
 
 
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
 
Nelson Mandela 1918 - 2013   Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science & Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office 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
SIOC CDT Investment Holdings|TWP|TWP Holdings|WorleyParsons|Basil Read
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
 
 
 
 
 
 
 
 
Other Construction News
MORE IN SA Phase 2 should see local content on the mainline locomotive increase from 65% to 80% by the end of 2014
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
HYDROPOWER POTENTIAL The 2 067 MW Laúca hydropower station will provide electricity for about 750 000 Angolans
Work on the 2 067 MW Laúca hydropower station, in Angola’s Kwanza riverbed, has started. The country aims to have the facility commissioned by the end of 2017, says Angolan State-owned power utility Empresa Nacional de Electricidade de Angola (ENE) international...
As part of Goscor Group, Goscor Lift Truck Company (GLTC) has been providing best practice in industrial warehousing equipment solutions for the past 30 years. The company provides a range of market-leading products, including Crown, Doosan, Bendi and Hubtex. This...
More
 
 
Latest News
Few would argue with the notion that unemployment, which stands at around 25% on the narrow definition as reported by Statistics South Africa, remains one of the country’s most pressing challenges. Fewer still could contest the view that South Africa’s education...
Renewable-energy projects, such as this Northern Cape solar farm, seen as key to low‐carbon energy supply.
Upfront investment costs will and should remain a critical consideration as South Africa moves to upscale and accelerate its infrastructure programmes. But one of the lead authors of the latest Intergovernmental Panel on Climate Change (IPCC) argues that the...
The barrier to efficient water service delivery in South Africa was not of a technological nature but rather related to legal and Constitutional challenges, Water Research Commission (WRC) CEO Dhesigen Naidoo said on Thursday. Opening a WRC debate under the theme...
More
 
 
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
 
 
 
 
 
This Week's Magazine
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
MORE IN SA Phase 2 should see local content on the mainline locomotive increase from 65% to 80% by the end of 2014
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
South Africa’s sole nuclear power station Koeberg, which is located in the Western Cape, breached a major operations milestone on April 4, which marked the thirtieth anniversary of Unit 1 having been connected to the grid. Eskom, which operates the two-unit plant,...
 
 
 
 
 
 
 
 
 
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