Transformation plan takes shine off WBHO’s performance
Wilson Bayly Holmes-Ovcon’s first-half headline earnings per share fall due to the costs associated with a deal to fast-track transformation in the sector
Wilson Bayly Holmes-Ovcon (WBHO) suffered a 38.3% fall in first-half headline earnings per share (HEPS) to R3.98 due to the costs associated with a deal reached with the government last year to fast-track transformation in the sector. Excluding the one-off liability, HEPS from continuing operations would have increased 10% to R7.10, the construction and engineering group said in a statement on Tuesday. WBHO will contribute R21.5m annually over a 12-year period to fund, which will be used for socioeconomic development. A total seven construction and engineering firms are involved in this deal. Revenue from continuing operations was up 0.9% to R15.4bn in the six months to December, but profit from operations slid 37.5% to R242.60m. Total order book in the review period dropped 6% to R40.2bn, reflecting a 15% decrease in the Australian order book and a 7% decrease in the building and civil engineering order book. But the roads and earthworks order book improved significantly — up 92% —...
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