Basil Read CEO Marius Heyns
Photo by: Duane Daws
Construction group Basil Read has informed the market that its earnings will be sharply higher for the interim period to June 30, 2013, owing to the profit realised from the disposal of TWP Holdings and an overall improvement in its operational performance.
The JSE-listed group sold TWP Holdings to WorleyParsons, of Australia, for R900-million in a transaction that was finalised in March.
CEO Marius Heyns indicated that the disposal had been pursued to allow the group to concentrate on its core business and sharpen its focus on special projects.
In a trading update released on Wednesday, the group said its earnings would be between 1 015% and 1 025% higher when compared with the previously reported corresponding period, while its headline earnings would rise by between 190% and 200%.
The group also confirmed that it had raised a further provision of R20-million during the period to cater for a R95-million settlement agreement reached with the Competition Commission.
Basil Read was one of 15 firms to settle with the commission, following a fast-track settlement linked to findings of bid rigging and collusion in the construction industry between 2001 and 2011. Collectively, the companies agreed to penalties of R1.46-billion, with some settlements still outstanding.
Basil Read’s interim results will be published on August 29.