Turnaround in Basil Read earnings

Posted On Friday, 03 February 2006 02:00 Published by Commercial Property News
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Basil Read Holdings unveils a turnaround in earnings for the year to end-December 2005, to fully diluted headline earnings per share of 42.6 cents

Listed investment holding company Basil Read has unveiled a turnaround in earnings for the year to end-December 2005, to fully diluted headline earnings per share (HEPS) of 42.6 cents from a loss of 179.72 cents a year earlier.

The group did not declare an annual dividend, opting to retain its cash reserves for future growth and expansion.

Basil Read, whose subsidiaries are focused largely in the areas of civil engineering and construction, said 2005 had been a turnaround year for it after a number of difficult years. Revenue rose by 32% to 617.3 million rand from 469.1 million rand in 2004, and profitability had been restored with a post-tax profit of 25 million rand, compared to a loss of 42.3 million rand a year earlier.

Headline earnings totaled 23.5 million rand, reversing a loss of 99 million rand in 2004, and net asset value per share was reported at 60.37 cents versus 11.86 cents the previous year.

Cash on hand rose to 92 million rand at year-end from 6 million rand a year earlier.

Contributing to the rise in profitability for the year had been Basil Read's decision to limit its cross-border activities in the rest of Africa and focus on its increasing workload in South Africa. However, it said, it would continue to work for selected private clients in Africa.

The group had been awarded new contracts worth over 1.0 billion rand - compared to only 160 million rand in 2004 - and had a healthy order book of 1.3 billion rand (up from 640 million rand previously). This provided a "favourable outlook for future sustainable growth," the company forecast.

"The favourable economic environment in South Africa, coupled with the current upswing in the construction industry, should translate into real growth for Basil Read," it said. "Several major projects are expected to commence in 2006, and through the reorganization of the group, Basil Read is well positioned to take advantage of future opportunities."

I-Net Bridge
Publisher: I-Net Bridge
Source: I-Net Bridge

Last modified on Tuesday, 25 June 2013 00:18

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