WBHO stung Down Under
Construction firm says mispricing of Melbourne roads upgrade its biggest mistake in 50 years
Australia has claimed another South African scalp with Wilson Bayly Holmes-Ovcon (WBHO) seeing a dramatic plunge in its interim profit because it incorrectly priced a roads upgrade project in Melbourne. CEO Louwtjie Nel said the group’s misunderstanding of how much work it needed to do in the design and construction of upgrades to eight roads in the western suburbs of Melbourne had become WBHO’s biggest mistake in 50 years. Its total comprehensive income plunged 60% to R119.5m in the six months to December compared with the interim 2017 period’s R299.5m. Its UK business contributed R2.6bn revenue, helping the overall group grow the top line 11% to R21.1bn in the first half of its 2019 financial year. Its Australian division, which contributed more than half of the group’s R20bn revenue for the reporting period, posted a R445m operating loss. This meant WBHO was unable to declare an interim dividend for the first time since 2003. "The design and construct project consists of the wide...
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