Photo by: Duane Daws
Civil engineering and construction group Esor expects to swing to a basic loss a share of between 6c and 7.2c for the six months ended August 31, from earnings a share of 0.6c in the first half of the prior year.
Similarly, the group’s headline earnings a share of 0.01c in the prior comparable six months would likely swing to a headline loss a share of between 6.2c and 7.4c for the period.
Esor, which was currently finalising its interim results for the six months, said in a trading update on Friday that the prior corresponding period included the results of the geotechnical business, which had since been sold.
“The loss has largely resulted from the N4 contract, which has incurred a further R50-million loss during the interim period. The loss on the N4 contract is mainly owing to the late completion of the works compared with final estimates in February,” the group stated.
This contract had been completed post-period end and the road had been opened.
Meanwhile, Esor’s claim on the Eskom Kusile underground terraces contract had been finalised and settled.
However, this settlement was insufficient to cover the amount traded and the company had incurred a R20-million loss on the settlement of this claim.
“There are still significant variations that are currently being substantiated. The balance of the cash, in excess of the R150-million that was previously paid on account, has been received. This removes the balance sheet risk associated with the advance payments,” it outlined.
Work on hand and the future pipeline remained healthy, with a secured outstanding two-year order book of R2.4-billion and “imminent” pending awards of around R500-million.
Esor expected to release its results for the six months ended August 31 later this month.