Construction materials provider WG Wearne on Monday reported a fully diluted headline loss per share of 15.52c for the year ended February 28, 2010, from a prior loss of 10.91c.

It noted a fully diluted loss of 26.74c, from a previous loss of 10.85c.

Revenue was down to R534.35 million, from R599 million previously.

The group noted a comprehensive loss of R49.4 million, from a prior loss of R18.3 million.

WG Wearne did not declare a dividend.

It said it experienced a particularly difficult year. "Intense competition in a sector that has been dominated by the collapse in residential developments and curtailed government infrastructure expenditure has seen year on year revenue decrease by 10.8%.

"The hardest hit sector was the ready mixed concrete division, where revenues declined by 34% year on year - this division is particularly exposed to the residential market," WG Wearne said.

The aggregates division experienced a 10% increase in revenue and the concrete products division has shown promising revenue growth year on year, the group added.

Looking ahead WG Wearne said that although the group's operating results for the year were poor, the directors believe that the worst of the downturn is now over.

"In the past year, the group has addressed its exposure to the sluggish residential construction market by reducing the size of the transport fleet in the ready mix concrete division by nearly forty percent.

"The business is now close to being right sized for the reduced turnover levels currently
being experienced. Our aggregates operations have performed well during the year and this should continue as government expenditure on roads and infrastructure is set to continue.

"The directors believe that the group's greater focus on roads and infrastructure combined with the cost savings resulting from the restructuring embarked upon, will see the Group's results improve in the 2011 financial year," WG Wearne concluded.