Local conditions force Basil Read to look for more projects in Africa
CONSTRUCTION company Basil Read is on the lookout for prospects on the rest of the continent, as the local construction sector remains subdued.In its interim results 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 R3...
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