COMPANY COMMENT: Basil Read puts a brave face on future growth
If just one of the projects on its two-year order book fails, it could undo the company
Management efforts at construction group Basil Read may be a little too late. Its share price has collapsed into near oblivion in recent years, down about 6.41% on Tuesday, with a 73c low. Any delays with its pipeline now, could mean worse trouble.The share price was at R30.35 on August 28 2007, but a weak economy, fines for its part in the 2010 Soccer World Cup collusion and delays at state infrastructure projects have decimated Basil Read. Its results for the half-year to June 30 out on Monday showed an operating loss of R458.8m, compared with R73.5m operating profit for the same period a year ago. The company says it can turn itself around with funding initiatives it has launched. It would return to profitability in its 2018 financial year, says acting CEO Khathutshelo Mapasa. The initiatives include a rights offer to raise R200m-R300m to help ease critically tight liquidity and to fund operations. Mapasa says the order book is at R10.7bn, including R3.1bn in construction work, R...
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