Ex­cel­l­lent growth in rough in­dus­try

Finweek English Edition - - Marketplace -

Wil­son Bayly Holmes (WBHO) showed that con­struc­tion can be prof­itable – even lo­cally – as South Africa still con­trib­utes about half of its op­er­at­ing prof­its. The com­pany is also grow­ing prof­its in the rest of Africa, Aus­tralia and the UK. All round an ex­cel­lent show­ing for the group in one of the tough­est in­dus­tries to op­er­ate in. Rev­enue for the year to 30 June 2018, was up 9.8%, while di­luted HEPS in­creased by 8.1%. The share sits on a P/E of around 10 times. WBHO has for a long time been the pre­ferred con­struc­tion stock on the JSE and it re­mains so, with Raubex (on a sim­i­lar P/E) the other in­vestable op­tion. But that said, I like my com­pa­nies to be op­er­at­ing in eas­ier en­vi­ron­ments. Ex­cel­lent man­age­ment can do so much more when con­di­tions are con­ducive to profit and growth – some­thing we are not re­ally see­ing in con­struc­tion. ■ ed­i­to­rial@fin­week.co.za

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