/ 7 September 2009

WBHO boosts earnings, eyes expansion

Africa’s third biggest construction group WBHO posted a 27% rise in full-year headline earnings per share and said on Monday it plans to continue seeking expansion opportunities in the continent and in the United Arab Emirates.

Wilson Bayly Holmes-Ovcon, which is constructing three stadiums for the Soccer World Cup, said full-year headline EPS rose to 1 610,8 cents per share, above its own forecasts of a 15% to 25% rise.

Headline EPS is the key profit measure for South African companies, and excludes non-trading, capital and certain extraordinary items.

Construction continues to be the best-performing sector in South Africa, bolstered by a government infrastructure spending programme and preparations for next year’s Soccer World Cup.

WBHO, which also operates in several other African states and in Australia, said its net profit increased 26% to R963-million.

The group said its order book at the start of 2010 stood at R15,3-billion and revenue rose 37% to R14,7-billion.

WBHO declared a final dividend of 200 cents per share.

WBHO’s rivals, Africa’s biggest construction company Murray & Roberts and Group Five, have also posted strong full-year profits.

Africa’s second biggest construction company Aveng last month revised its own forecast for full year headline earnings per share to 9,14% lower. Aveng is due to publish its annual results on Wednesday. – Reuters