Listed construction and engineering group secures R11bn in new work this year
Firm secures about R11bn in new work this year
THE AUSTRALIAN building business of listed construction and engineering group WBHO has secured almost R11 billion in new work since January this year across the retail, commercial and residential markets.
The businesses accounted for 65 percent of the group’s total order book of R40.2bn in December.
The group yesterday reported that WBHO Australia had increased its stake in Pro build Construction to 85.6 percent through the acquisition of a further 0.8 percent shareholding from minority shareholders for AUS$1.4 million (R13.9m).
WBHO entered the Australian market in 2001 after acquiring an initial 40 percent interest in Probuild Construction.
Offset However, WBHO’s Australian order book decreased 15 percent to R26.2bn at the end of December from R30.9bn in June last year, contributing to the 6-percent decline in WBHO’s total order book to R40.2bn in December from R42.7bn in June.
The group reported a 7 percent decrease in the building and civil engineering order book to R8.1bn in December from R8.7bn in June, which was offset by a 92 percent increase in the group’s road and earthworks order book to R5.8bn from R3bn in the same period.
Louwtjie Nel, the group chief executive of WBHO, said the Australian building market remained strong and Probuild continued to maintain sound relationships with key clients, resulting in repeat contracts.
Probuild in the six months to December secured its largest contract yet, the AU$340m Greenland Centre, a 235 metre residential skyscraper that will be the tallest residential tower in Sydney.
Nel said the successful relationship with Greenland led to the award of a further project in Sydney in January for a AU$100m residential development commencing in April.
Nel said that the infrastructure and civil engineering book in Australia had improved by 37 percent since June last year.
He said the order book for building in South Africa remained healthy across all sectors and regions over the short term, but they were beginning to experience some softening in the project pipeline and a slightly lower order intake.
WBHO yesterday reported a 38 percent decline in headline earnings a share to 398 cents in the six months to December from 645c in the previous corresponding period.
Adjusting group earnings for the once-off liability from the agreement between the government and seven construction companies that have collectively agreed to contribute R1.5bn for transformation projects to settle outstanding and potential civil damages claims from state entities, WBHO’s headline earnings per share increased 10 percent to 710.1c from 644.7c.
WBHO will contribute R170m over a period of 12 years in terms of the settlement.
Revenue from continuing operations was flat at R15.4bn.
Operating profit before non-trading items declined 4.7 percent to R471m from R495m.
Cash generated by operations slumped 86 percent to R136m from R953m. An interim dividend a share 150c was declared, which of was 11 percent higher than the dividend of 135c for the previous period.
Shares in WBHO dropped 1.19 percent on the JSE yesterday to close at R145.75.