WBHO expects lower year-end earnings
Construction group Wilson Bayly Holmes–Ovcon (WBHO) said on Thursday that it would report lower earnings when it publishes its year-end financial results early next month.
The company said its earnings a share would fall by between 5% and 10% and its headline earnings a share could decline by between 0% and 5%.
In the financial year to the end of June 2012, WBHO posted earnings of 1 184c a share and headline earnings of 1 167c a share.
“The reduction in earnings is primarily due to additional provisioning for the Competition Commission penalty, the tax treatment thereof and margin dilution in Australia as a result of three challenging projects,” WBHO said in a trading statement.
The company was fined R311.29-million for its involvement in collusion in the construction industry and was one of 15 firms to agree to fines collectively valued at R1.46-billion.
WBHO CEO Louwtjie Nel said at the Competition Tribunal settlement hearings last month that the group accepted responsibility for its actions but stressed that it was something of the past.
The firm will publish its financial results for the year ended June 30 on September 2.
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