Local conditions force Basil Read to look for projects in rest of Africa

Posted On Tuesday, 23 August 2016 17:58 Published by
Rate this item
(0 votes)

Basil Read is on the lookout for prospects in the rest of the continent as the local construction sector remains subdued.

 Neville_Nicolau_Basil_Read

Construction company Basil Read (BSR) is on the lookout for prospects in the rest of the continent as the local construction sector remains subdued.

In its interim result statement‚ the company said it expected the challenges to put pressure on its margins and liquidity position in the second half of the year‚ but that it was committed to maintaining a healthy order book.

“While we remain committed to the South African market‚ we are cautiously exploring opportunities across sub-Saharan Africa. With two sizeable contracts - the St Helena airport project and the Olifants River water resource development project - winding down in 2016‚ maintaining our order book is key.

“Equally important is ensuring our overhead cost base is continually aligned to our operating divisions‚” the company said.

In the six months to end June 2016‚ Basil Read said the value of its order book was R10.4bn which was “above target” but slightly lower that the prior year’s level of R10.7bn. Profit after tax fell to R34.4m from R41.6m while headline earnings per share increased to 48.92c from 37.13c in the year-earlier period.

In the first half of its financial year‚ Basil disposed of SprayPave at a loss of R33.8m. “With the closure of Matomo substantially complete‚ this concludes the sale or closure of noncore assets started as part of the restructuring in late 2014‚” the company said.

Other construction companies set to release results this week include Aveng (AEG) and Murray & Roberts (MUR).

At 4.40pm‚ Basil Read's share price was down 1.67% to R2.95‚ valuing the company at about R395m.

sourceBDpro

Last modified on Tuesday, 23 August 2016 18:12

Most Popular

University of Fort Hare construction resumes

Jun 18, 2020
Construction of UFH Student Housing
Following two months of hard lockdown, the development of a 2 047-bed student village at…

SA property prospects as we look beyond COVID-19 lockdowns

Jun 11, 2020
John Loos FNB Property Economist
“The COVID-19 Crisis has changed the world a lot, perhaps less through introducing new…

Estate Agency Affairs Board to re-open its doors this month

Jun 13, 2020
Mamodupi Mohlala
The Estate Agency Affairs Board (EAAB) will re-open its Sandton, Johannesburg offices…

Grit to improve liquidity, save costs through proposed JSE de-listing

Jun 11, 2020
Bronwyn Corbett Grit
London Stock Exchange listed Grit announced its intention to de-list from the JSE.

Redefine’s European logistics platform set to expand its footprint in Poland

Jun 17, 2020
Andrew Konig CEO Redefine
JSE listed diversified real estate investment trust Redefine Properties (JSE: RDF) along…

Please publish modules in offcanvas position.