JOB CUTS UNLIKELY
How Esor plans growth amid tender drought
Growth continues to be held back by delays in various projects
JSE-listed civil and construction group Esor is likely to avoid further retrenchments during the first half of 2018, having already lost 20% of its workforce in the six months to August, says CEO Wessel van Zyl. Growth continues to be held back by delays in various projects, but the group has an order book worth R1.41bn, up from R1.4bn a year before. "The slightly improved order book is not reflective of the buoyant tender market," Van Zyl said on Thursday when the group released financial results for the six months to August. The nonawarding of tenders to contractors was frustrating, largely due to funding constraints in government infrastructure budget allocations. "We are sitting with an order book worth R1.41bn, which will ensure we perform okay for the next year and should not have to retrench anyone else." Esor had R3bn worth of work in pending awards. "The problem is many of the projects within this book, including some where the state needs to spend, have stalled," he said. ...
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