Wednesday, 11 June 2008 02:00

SA airports ready for 2010

SA's three major airports will be ready by 2010 for the thousands of Soccer World Cup visitors, the Airports Company of SA said.

Thursday, 22 May 2008 02:00

Esor thrives on building boom

Geotechnical engineering specialist Esor on Wednesday reported a threefold increase in revenue to R1bn for the year to February as it benefited from commercial and government infrastructure spend and a building upsurge in Angola and Mauritius.

Construction IndustryCEO Bernie Krone said today’s buoyant construction market was the primary driver for the group’s organic growth.

“The Gautrain continues to be a major contributor. We have R400m worth of work for the high- speed train which will be world class, with 14 months’ worth of work,” Krone said.

Of the R420m worth of projects secured, R170m was completed during the year.

“The Gautrain … is stimulating major development within the radius of its stations’ use areas, which will dramatically alter the urban landscape and further boost the construction industry beyond 2010.” The many new developments in the pipeline included high-rise offices, hotels and retail and commercial building projects.

The group has completed piling projects for Airports Company SA at the new King Shaka and Cape Town International Airports and contracts for piling, pedestrian culvert jacking and lateral support at OR Tambo International Airport.

Work on stadiums for the 2010 World Cup has been completed at Athlone Stadium in Cape Town, Moses Mabhida Stadium in Durban and Port Elizabeth Stadium.

Profit came in at R116m from R34m a year before.

Headline earnings per share jumped 240% to R115m, equating to 51,3c per share while net asset value per share increased 46% from 109,8c per share to 160,3c.

The group declared a final dividend of 20c per share for the year for a total of R49,6m.

Krone said the group was entrenching its presence in Africa, building on subsidiary Franki’s foothold in oil-rich Angola. Contracts for piling, lateral support and marine works projects were completed during the year.

Stringent cost control kept operating margins steady despite the negative effect on the group of unusually abundant December rains.

“We did see a slight decrease in margins in the final quarter of the year since excessive rain in Gauteng slowed down projects before and after our year-end break.

“However, a stricter focus on operational efficiencies and aggressive investment in plant helped keep margins on a par with last year,” Krone said.

Esor invested R147,5m in new equipment during the year.

Krone said the current year would be an acquisitive one, but the group would look only at companies that made good business sense and in the geotechnical engineering sector.

 

Thursday, 13 December 2007 02:00

Nedbank clinches Irene project deal

Nedbank Corporate Property Finance’s Gauteng division has acquired an effective one-third interest in a proposed multibillion-rand mixed-use development in Irene

Tuesday, 28 August 2007 02:00

WBHO full year HEPS up

Construction group Wilson Bayly Holmes Ovcom (WBHO) on Monday reported 512.1 cents in headline earnings per share (HEPS) for the year ended June compared with 351.7 cents a year ago.

Construction IndustryA final dividend of 85 cents per share (2006: 54 cents) has been declared which, together with the interim dividend of 36 cents per share, gives a total dividend of 121 cents for the year - up from 81 cents a year ago.

Revenue rose 40.3% to 8.1 billion rand and operating profit surged 58.6% to 415.8 million rand.

The group's building and civil division, which plays a major role in preparing the country for the 2010 Fifa World Cup, increased turnover by 31% from 4.4 billion rand to 5.7 billion rand in 2007. Operating profit increased by 47% to 222 million rand.

"We are partners in joint ventures which have been awarded contracts for the construction of the King Shaka International Airport, as well as the soccer stadia in Durban, Cape Town and Polokwane. Because of the early stages of these contracts no profits have been recognised in these accounts," the company said.

In addition, the group is engaged in major works at OR Tambo International Airport as well as the construction of shopping centres, office and apartment blocks and hospitals throughout the country.

It has recently been awarded in joint venture the One and Only Hotel in the Cape Town Waterfront.

However, in Australia, turnover has been relatively flat compared to 2006, but Probuild Constructions nevertheless increased profits by 11%, the company noted.

"There are indications that the market is improving in Melbourne and the order book is at a reasonable level," the group said.

Basic Constructions, the group's cvil engineering company in Brisbane, experienced a busy year with turnover increasing by 22%.

"Our activities in Sydney also showed significant growth and we have strengthened our foothold in this large but competitive market," the company said.

The road and earth works division's turnover of 1.9 billion rand was 61% higher than last year. Operating profit increased by 7% from 71 million rand to 76 million rand but with margins declining from 6.1% to 4%.

"Work for the mining sector has increased, providing good opportunities for additional work for the division. The division is also contracting in the DRC, Ghana, Zambia and other SADC countries," the group said.

Looking ahead, the group said its outlook for the construction industry remained positive with prospects for new work more likely to arise in the civil engineering sector than in the building sector.

"We believe we are well placed to benefit from this shift in the industry," the group said.

The company is starting the 2008 financial year with an order book of 10.6 billion rand ? from 6.1 billion rand last year.

"The nature of our order book has changed with a greater number of large contracts spread over longer time periods," the group said.

 

Airports Company SA (Acsa) said yesterday that it would spend R19,3bn over the next five years to expand the capacity of its airport infrastructure.

Houses in the suburbs around the airport could be expropriated if Airports Company SA goes ahead with plans to expand facilities at the airport

Wednesday, 14 February 2007 02:00

Arup appointed watchdog to Gautrain

Transport civil engineering com-pany Arup SA has been awarded a R150m contract to monitor work on the Gautrain project.

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