Melbourne road contract nearly wipes out WBHO’s profit
Shareholders will get no interim dividend for the first time as the construction group books a R445m loss from Australia
Anticipated losses from a contract to upgrade roads in Melbourne's suburbs has prompted Wilson Bayly Holmes-Ovcon (WBHO) to skip an interim dividend. Iress data indicates this is the first time the construction group has not paid an interim dividend since 2003. It maintained its interim dividend at R1.50 in the matching period. The group's Australian division, which contributed more than half of the group's revenue for the six months to end-December, posted a R445m operating loss, its results, released on Tuesday morning, showed. “The design and construct project consists of the widening of roads and upgrades to various intersections in suburban Melbourne,” CEO Louwtjie Nel said in the results statement. “The main reason behind the loss recognised relates to interpretation of the technical specification. This interpretation resulted in the underestimation of the physical work required to be performed to meet the output specifications of the contract.”
Australia contributed mor...
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