http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.83Change: -0.12
R/$ = 11.04Change: -0.17
Au 1172.85 $/ozChange: 3.68
Pt 1231.00 $/ozChange: -0.50
 
 
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
 
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  
 
 
Sep 01, 2008

WBHO eyes growth as earnings more than double

Back
Brisbane|Cape Town|Construction|DURBAN|Engineering|Melbourne|Natal|Perth|Polokwane|SYDNEY|Africa|Capital African Steel|Projects|Roads|Africa|Australia|South Africa|Tambo International Airport|Building|Civil Engineering Contractor|Energy|Mining|Steel|FIFA|Infrastructure|Mike Wylie|Wilson Bayly Holmes-Ovcon|500c|R10|FIFA World Cup|Soccer
Construction|Engineering||Africa|Projects|Roads|Africa|||Building|Energy|Mining|Steel||Infrastructure||||
brisbane|cape-town|construction|durban|engineering|melbourne|natal|perth|polokwane|sydney|africa-company|capital-african-steel|projects|roads|africa|australia-country|south-africa|tambo-international-airport|building|civil-engineering-contractor|energy|mining|steel|fifa|infrastructure|mike-wylie|wilson-bayly-holmesovcon|500c|r10|fifa-world-cup|soccer
© Reuse this



New construction work in the energy, infrastructure and mining sectors were seen as growth areas for building and civil engineering contractor Wilson Bayly Holmes-Ovcon (WBHO) for the 2009 financial year.

The group, headed by chairperson Mike Wylie, said in a statement to shareholders on Monday that it was well-positioned to participate in this growth and that it had the capacity to play a significant role in South Africa's infrastructural rollout.

"We believe we are well placed to produce another year of real growth while maintaining our profit margins. However, it is unlikely that we will achieve the same rate of growth as accomplished this financial year," Wylie commented in the statement.

The contractor on Monday reported a 146% increase in headline earnings to R694-million for the year ended June 30, 2008, compared with R283-million the year before.

Earnings a share had increased by 160% to 1 303c a share for the year ended June 2008, compared with 500c the year before, while the group's net profit had increased by 140% to R763-million for the year, compared with R318-million in 2007.

Further, the group's turnover for the year ended June 30, had increased by 34% to R10,9-billion, compared with R8,1-billion in 2007.

WBHO's operating margin had improved to 8,3%, compared with 5,1% the year before, which the group said indicated the improved conditions in the construction industry locally, as well as in the African markets and in certain sections of the Australian market.

The contractor had also increased its order book to R18,3-billion, as at July 1, 2008, compared with R10,6-billion as at July 1, 2007.

Meanwhile, Wylie noted that the group would also continue to search for opportunities outside of South Africa to facilitate further growth opportunities for the group.

DIVISIONAL HIGHLIGHTS

WBHO reported that all the regions in which its Building & Civil division was operating had "pleasing" levels of work on hand, with the group continuing to play a major role in South Africa's preparations for the 2010 FIFA World Cup.

The group was a partner in a number of joint-venture construction projects, including the new international airport at La Mercy in KwaZulu-Natal, the soccer stadiums in Durban, Cape Town and Polokwane, and the upgrade of the OR Tambo International Airport.

The contractor stated that there had been an increase in the number of civil contracts on its books, which resulted in a 37% increase in revenue to R7,8-billion for the year ended June 2008, compared with R5,7-billion the year before.

The Probuild business, operating in Australia, had mixed results, with results from Melbourne being excellent, while conditions in Sydney were more competitive.

However, the business had started the 2009 financial year with a large portion of its budgeted turnover secured and was expected to achieve significant increases in turnover and profit.

Further, in Perth, the group had a solid base of secured work with civil engineering associate CECK reporting increased turnover and profits, while Brisbane associate Basic Construction had also reported taking on a number of large projects throughout the year.

Meanwhile, the Roads & Earthworks division had achieved a 45% increase in revenue to R2,7-billion for the year ended June 2008, compared with R1,9-billion the year before.

WBHO reported that work in the mining sector had increased and that the group was heavily involved with infrastructure work in the public and private arenas, which was providing the group with good opportunities for additional work for the division.

The division's order book for the 2009 financial year was "exceptionally strong" with more than 85% of its work secured.

Further, there was potential for a number of acquisitions that was currently under consideration within the Capital African Steel (CAS) business.

WBHO expected all the operating companies with CAS to produce strong profit growth during the 2009 financial year.

 


Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Infrastructure News
Rosatom VP: sub-Saharan Africa Viktor Polikarpov
Russian nuclear energy group Rosatom confirmed on Friday that it had canvassed funding options with South African government officials during a recent “nuclear vendor parade workshop” held in the Drakensberg on October 23. The company said the options discussed were...
SECURING THE DOOR Bitcon’s security doors are supplied as a door and frame unit and installed by the building contractor
Security-door company Bitcon Industries completed a modernisation programme of its manufacturing plant last month, enabling it to meet the growing demand from businesses for its range of security, fire, radiation and transformer doors, says director Bob Vollmer....
More
 
 
Latest News
The retail price of 95-grade petrol in South Africa will drop by 45 cents or 3.3 percent a liter from next Wednesday, while wholesale diesel will decrease by 4.9 percent, the government said on Friday. Petrol will cost 13.16 rand ($1.20) a liter while the wholesale...
Special purpose vehicle GreenCape will, by the end of 2014, make an application to the Department of Trade and Industry (DTI), the Western Cape provincial government and the City of Cape Town to declare Atlantis, on the Western seaboard, a special economic zone...
The German government has committed a further R70-million towards the second phase of the Non-Motorised Transport (NMT) programme. The NMT programme forms part of the Department of Environmental Affairs’ 2010 FIFA World Cup National Greening Legacy Programme.
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
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.
 
 
 
 
 
This Week's Magazine
In the next 20 years, it was expected that, in Africa, more people would live in cities and towns than in rural areas, United Nations Habitat executive director Dr Aisa Kirabo Kacyira said at the Human Settlements Indaba that took place earlier this month in...
Tough-talking Human Settlements Minister Lindiwe Sisulu has committed government to building 1.5-million low-cost houses over the next five years, telling the Human Settlements Indaba in Johannesburg on Wednesday that the State would achieve this target through the...
Over the past 20 years there has been persistent concern about deindustrialisation in South Africa, as well as the fact that locally produced manufactured products have been increasingly displaced by imports.
Financial agreement for Ghanian independent power producer (IPP) Cenpower Generation Company’s $900-million, 350 MW combined-cycle gas-turbine power plant was finalised earlier this month, paving the way for the project’s construction to begin before 2015 in Tema,...
The revenue implications for South Africa of ‘base erosion and profit shifting’ by corporate taxpayers are firmly in the crosshairs of the Davis Tax Committee (DTC) and Judge Dennis Davis hinted last week that recommendations were being considered to “detect and...
 
 
 
 
 
 
 
 
 
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