Business sale, contract loss likely to dampen Esor’s H1 showing
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.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...
VISIT SHOWROOM
Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
