WBHO to start financial year with great expectations
Noting that it continues to secure “quality” projects locally as well as in other African building markets, construction major Wilson Bayly Holmes-Ovcon (WBHO) closed the financial year ended June 30 in line with expectations, with an order book of R38.13-million, it revealed on Some 66% of all contracts were secured in the Australian market, with the building division within subsidiary Probuild continuing to perform “satisfactorily”.
WBHO at the end of the first half of the year reported on four lossmaking contracts within its Australia-based civil engineering companies, Probuild Civil and WBHO Civil.
“With the exception of the Tan Burrup project, in Karatha, all projects are now complete; however, the resolution of claims relating to these projects will not be finalised in the current financial year,” it stated. Meanwhile, the volume of replacement work anticipated in December did not materialise in the latter half of the year and, thus, further downsizing of these companies had been necessary.
The lack of mining projects, meanwhile, continued to impact the roads and earthworks division, resulting in replacement work being procured from different sectors, predominantly the road and energy sectors.
WBHO added that “limited” progress had occurred with regard to the case referred to the Competition Tribunal relating to collusive tendering. “WBHO remains confident that it can defend these cases and has not made a provision in this regard,” it held.