The group had experienced high growth levels in the previous financial year, and could not repeat the performance off such a high base, said financial director Angus Mackenzie in comments on the group's interim results to December yesterday.

However, delays in the awards of certain foreign contracts and the strengthening of the rand had also dampened turnover growth during the reporting period.

'The rand had a significant effect turnover and profit could probably have been R10m to R15m higher had the rand not firmed to the levels it had,' he said. The group still expected to achieve 'real' growth in headline earnings a share for the full year.

During the reporting period, WBHO's turnover rose 13,8% to R1,2bn, while headline earnings a share grew 30% to 86,9c. Earnings a share rose to 61,1c from 44,3c.

Mackenzie said the company had been digesting the huge increases of the prior financial year during the reporting period.

The order book remained fairly stagnant at R2bn, which also resulted from a quiet building market. For the remainder of the year, however, Mackenzie foresaw a buoyant domestic market, particularly in civil and heavy concrete structure work.

'There will be government expenditure particularly on infrastructure, as well as private expenditure on construction projects,' said Mackenzie.

Earnings from associate firms in the reporting period showed a substantial increase largely because of a bigger stake in Australian firm Probuild Constructions, effected in July last year.

WBHO also acquired Suncon, a medium-sized building firm in Botswana, to establish a greater foothold in the building sector.

The SA company also acquired a minority stake in Capital Africa Services, which has an interest in a reinforcing mesh company and another company that produces rock anchors primarily for the mining industry.

These were strategic investments expected to make worthwhile contributions to the group's bottom line in future.

Business Day