Struggling construction group Esor could soon be facing a moment of reckoning in its 13-year history as a listed entity, with cash constraints casting a shadow on its status as a going concern. Esor is being squeezed on several fronts, including costly contracts that dragged it into a steeper loss in the year to end-February, in another example of the struggling construction and engineering industry. Basil Read has filed for business rescue, while Aveng is the subject of a takeover bid by competitor Murray & Roberts, signalling that the industry may be due for consolidation. The government has cut spending on infrastructure to maintain fiscal discipline, leaving a gaping hole for companies that rely on it as a source of revenue. "The construction sector is one of a cyclical nature," IG SA senior market analyst Shaun Murison said. "Following the 2010 World Cup, we have seen the sector going through a contractionary phase," he said. Esor, which operates in SA and other parts of the co...
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