BASIL Read says the construction sector in SA remains subdued, with a marked falling off in tender activity. This means competition for projects remains fierce, with margins at razor-thin levels.The share fell 3.45% in late afternoon trade on Tuesday, amid liquidity constraints, especially in the construction division. But despite the weak market conditions, the group has a healthy order book of R10.4bn.Cash balances in the six months to June fell to R219m from R475m in December 2015, as the St Helena airport project and Olifants River water resource development project wound down.But the group said R200m in debt funding from the Industrial Development Corporation would relieve liquidity pressures.Meanwhile, the pending resolution of legacy claims would further boost overall liquidity.Basil Read said it continued to make progress under a simplified operating structure of five core divisions. It also reiterated it was in discussions for the potential private placement of shares that ...
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