Basil Read warns of half-year earnings slump
Construction major Basil Read expects its earnings a share for the six months ending June 30 to be at least 135% lower than that of the first six months of the prior year, while headline earnings a share are expected to contract by a dramatic 270% over the same period.
The comparative results included the profit on disposal of the engineering and construction group TWP for R183-million.
The company attributed the contraction in earnings a share to loss-making contracts in the roads and civil engineering divisions, owing to “ongoing challenging conditions”.
“For certain of these contracts, the group is currently finalising claims to be submitted, but has not included any of these claims or possible penalties in projecting the estimated earnings and headline earnings decline,” it stated.
Basil Read further advised shareholders that the board had decided not to declare a dividend for the year ended December 31, 2013.
The group expects to release its results for the six months ending June 30 on or around August 27.
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