Wilson Bayly reports strong earnings

Posted On Tuesday, 29 August 2006 02:00 Published by eProp Commercial Property News
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Wilson Bayly Holmes Ovcon achieves headline earnings per share of 351.7 cents for the year ended June - an increase of 39.8% over the previous year

Construction IndustryBuilding and Civil engineering contractors Wilson Bayly Holmes Ovcon (WBHO) achieved headline earnings per share of 351.7 cents for the year ended June - an increase of 39.8% over the previous year.
The group said this was partly due to an increase of R20 million in the fair value of its concessions and investments. If this amount was eliminated, earnings per share from operations would be 320 cents per share, an increase of 29% over the previous year.
Revenue reached a level of R5.8 billion, an increase of one billion rand compared to last year.
"This year the growth has been mainly in South Africa with foreign revenue showing a 19% decrease," the group said.
Cash balances have increased by R86 million over the year despite increased capital spend and a higher working capital demand due to the increased revenue levels.
A final dividend of 54 cents per share was declared, giving a total dividend for the year of 81 cents per share, an increase of 28.6% compared to 2005.
On its prospects for the ensuing year, the group said: "We start the next financial year with an order book of 6.1 billion rand (2005: R4.2 billion). The construction industry is very active at present and we believe this trend will continue for the next few years. The infrastructure spend by government and state-owned enterprises is hampered by slow delivery but we expect that this will accelerate in the near future. This spend has begun with work coming from Acsa and Eskom, and the Soccer World Cup work is becoming a reality.
"Civil works for the mines looks promising with an increase in capital projects coming from that sector.  The risks facing the industry are shortages of skills and the supply of certain materials. Increases in interest rates could also affect growth in the commercial building sector. Nevertheless, we believe that there should still be good construction opportunities until at least 2010."


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