CONSTRUCTION
Onerous aqueduct project splashes Esor results with red ink
Civil engineering and construction group swings into a loss for the year to February because of its struggling Northern Aqueduct project
Civil engineering and construction group Esor swung into a loss for the year to February because of its struggling Northern Aqueduct project and other asset write-downs. The group reported a loss of R139.8m compared with profit of R3.7m in the prior financial year. The group has struggled over the past few years and its share price has fallen about 83% over the past five. It reported revenue of R1.4bn to February 2017. There was an increase in its order book to R1.54bn from R1.4bn at the end of the first half of its financial year. CEO Wessel van Zyl said the top-line performance was satisfactory given the losses on the additional repair work that Esor completed at Northern Aqueduct, which amounted to R102m for the 2017 financial year. The Northern Aqueduct is being built in Umhlanga and forms part of long-term plans to facilitate efficient delivery of water to the north of Durban. "It remains an onerous contract to complete, given the nature of the repair work.... "A number of fact...
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