Black-owned development fund settlement hits WBHO
Wilson Bayly Holmes-Ovcon’s voluntary settlement with the state hurts headline earnings per share
One-off nontrading items hit Wilson Bayly Holmes-Ovcon (WBHO) for a six in the interim period to December 2016. These included a R170m payment arising from the voluntary agreement the construction and engineering group had signed with the government. This saw headline earnings per share plunge 38%. Without this, earnings per share and headline earnings per share would have risen about 10%. The payment will see WBHO contribute R21.5m annually over 12 years to a fund aimed at developing black-owned construction groups. The full liability is recognised in the current period. The group saw a 16% rise in revenue derived from SA. Revenue from continuing operations of R15.4bn was in line with revenue in the 2015 period. But the lack of mining activity in the rest of Africa saw revenues from the region plunge by 42% over the comparative period. Meanwhile, Australian revenue in rand was largely flat. This saw operating profit fall by 4.7% to R471m. The overall margin for the group slipped fr...
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