Sep 01, 2008
WBHO eyes growth as earnings more than doubleBack
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
© Reuse this
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.
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)
Updated 7 hours ago Canada’s Barrick Gold Corp will suspend operations at its Lumwana copper mine, in Zambia’s Northwestern province, after the country enacted legislation that raised the royalty rate on openpit mining operations from 6% to 20%. TSX- and NYSE-listed Barrick, the world’s...
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
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.
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...