Esor reports increase in final order book but reports losses on several projects
Civil engineering and construction group Esor has reported revenue of R1.4bn for the year to end-February 2017.In its final results released on Thursday it reported an increase in its order book to R1.54bn from R1.4bn at the end of its first half.The company said profitability had been "severely impacted" by losses of R102m incurred on its Northern Aqueduct project, impairment of goodwill of R50m and the write-down/fair value adjustment of R51m of the Franki Africa contingent consideration following losses incurred by Franki Africa."The Northern Aqueduct remains an onerous contract to complete given the challenges of addressing the legacy quality issues, which remain the key factor to getting off site.Initially set for completion in August 2015, the project was delayed due to quality issues and rain and community unrest.It said the delays had resulted in a total loss of R147.1m over the past two financial years.It now expects the project to be completed in December 2017."East Coast ...
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