Construction group Concor expects to announce an empowerment deal that would see the company sell between 15% and 26% of the listed business by the end of March next year.

The deal will represent the first substantial equity deal by any of the five large listed construction companies in SA. Empowerment deals are expected to pick up pace in the construction industry against the backdrop of the anticipated start of talks about an empowerment charter early in 2004.

Concor's progress on empowerment was revealed in an independent report on the firm compiled by business analyst Robin Pegler.

The report says the partner would have contracting skills. "It will not just be a question of having access to government circles."

The report recommends Concor as a long-term buy, signalling expectations for improved performance by the company.

Pegler says 1999 and 2000 were disastrous years for Concor . The company has since, however, implemented several management and system changes and has been recovering steadily.

Concor's management was cautiously optimistic about earnings growth at the start of this financial year, but the rand has subsequently made further gains. Management is now no longer expecting earnings growth for this year.

Pegler says that Concor's financial position could be better.

Current assets only just cover current liabilities, and gearing is 32%. However, interest received exceeds interest paid last year.

"This applies in most years, with the difficult 2000 and 2001 financial periods being the only exceptions in the last seven years," says the report.

Among Concor's most significant contracts is the R1,5bn Coega harbour project in Eastern Cape