Photo by: Duane Daws
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.