WBHO to emulate peers with BEE deal

Posted On Thursday, 31 August 2006 02:00 Published by eProp Commercial Property News
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Construction group Wilson Bayly Holmes Ovcon is set to announce a black economic empowerment deal next month, the group said this week

Construction IndustryConstruction group Wilson Bayly Holmes Ovcon (WBHO) is set to announce a black economic empowerment deal next month, the group said this week.

When it unveils the black economic empowerment details, WBHO will be following a trend set by competitors Basil Read, Murray & Roberts, Group Five and Aveng, which have empowerment partners.

The construction industry earlier this year released an empowerment charter that binds companies to ensure that 30% of their equity is in black hands by 2013.

In its results for the year ended June 30, WBHO said it was in final stages of negotiating its empowerment structure.

"The details of this initiative will be announced in September. Other aspects of the scorecard, such as employment equity, training, enterprise development and procurement, continue to be addressed by management," the group said.

In the past financial year, WBHO increased revenue by R1bn to R5,8bn.

The group's headline earnings a share rose 39,8 % to 351,7c a share, compared to the corresponding period last year. The group declared a final dividend of 54c a share, giving a total dividend for the year of 81c a share.

The company starts the new financial year with an order book of R6,1bn, up from R4,2bn last year. "The construction industry is very active and we believe this trend will continue for the next few years," it said.

The group said slow delivery had hampered infrastructure spending by government and government-related institutions, "but we expect that this will accelerate in the near future".

Australian subsidiary Probuild Constructions increased its profit despite reduced revenue, it said. Parts of the Australian market were quiet while others - such as Brisbane and Perth - experienced a construction boom.

It said the civil engineering division increased revenue and profit. The number of capital projects undertaken by the mining industry has improved during the year "and this trend should continue in the medium term".

Wholly owned subsidiary Capital Africa Steel performed ahead of profit and revenue budgets and was likely to report further increases in the coming financial year, the group said.


Last modified on Thursday, 17 October 2013 17:29

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