WBHO gets a lift from Australia, and an accounting change
Where most of its peers have posted losses, geographic diversification and an accounting change helped construction and engineering group Wilson Bayly Holmes-Ovcon posted increased profit in the year to end-June. Headline earnings per share (HEPS) rose 8% to R14.15, WBHO said on Tuesday. Australia came in handy, with revenue there up 18%, more than making up for a sluggish performance in the group’s home market, where revenue dropped 7%. Relative to its peers, WBHO has over time performed better operationally, as well as on the market. WBHO said in the results statement that market sentiment was positive in Australia and the UK, while the local construction environment deteriorated rapidly, with a number of large and medium-sized contractors facing financial difficulties. Basil Read and Esor both filed for business rescue, while Aveng is battling for survival after Murray & Roberts dropped a proposal to acquire the struggling group. Australia accounted for 63% of total group revenue...
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