Group turnover was 37% higher at R14.8bn while operating profit of R1bn was 16% up. Headline earnings per share were 27% higher than the previous year at 1.605 cents.

 

The operating margin slipped slightly from 8.3% last year to 7.1% reflecting the tighter conditions in the construction sector both at home and abroad.

 

However a final dividend of 200 cents was declared, resulting in a total dividend for the year of 300 cents.

 

Group chairman, Mike Wylie said he was pleased with a 27% increase in headline earnings especially considering that headline earnings growth has exceeded 70% for the past 3 years – “the strength of WBHO never ceases to surprise me.”

 

However he sounds a note of warning that the procurement environment is become more difficult – project finance is under pressure in both the public and private sector and margins are tightening. WBHO, with a strong order book of R15bn, a very strong balance sheet including R4bn in cash and great client relations, is well positioned to tackle the difficult times ahead.

 

We are pleased and relieved to find that Australia is managing the financial crisis better than other Western countries and there are signs that the resources market is improving.

 

Divisionally, the roads and earthworks division had an exceptional year with a 70% increase in turnover to R4.6bn. The division is busy on a host of major projects – including a R1.9bn portion of the Gauteng Freeway Improvement Project; the new King Shaka International Airport in Durban; a R700m waterline replacement project for the eThekwini Metro; several large mining and infrastructure projects in Botswana, Ghana, Zambia, the DRC and Mocambique and a myriad other smaller projects in the mining and private sectors. Wylie notes that the majority of the division’s order book for the current year has already been secured.

 

The building and civil engineering division, which is more reliant on the private sector, has been negatively impacted by the diminishing pool of development finance and the reduced global demand for commodities and resources. Nevertheless, the division increased its revenue to R10.2bn – R4.7bn of which was contributed by the Australian operation.

 

It has completed work on the new central terminal building at OR Tambo International Airport and the Morningside Shopping Centre and has commenced work on a number of shopping centres in Tshwane, Polokwane, Sandton, Rosebank, and the Eastern Cape. In addition, the division is still active on construction work at the Peter Mokaba Stadium in Polokwane; the Moses Mabhida Stadium and King Shaka International Airport in Durban.

 

Offshore, WBHO’s Australian subsidiary, Probuild Constructions, once again had a good year increasing turnover by 51% to AU$661m. The company is active all over Australia - particularly in Melbourne, Victoria, where it has been awarded several building contracts in excess of AU$100m. Despite Australia being affected by the global economic slowdown, the division is looking to increase both turnover and profit in 2010 and starts the year with an order book of 93% of its budgeted annual turnover.

 

Sales in the company’s two property developments, were slow because of the fall off in the real estate market. Nevertheless profit of R1,7m was accrued by the division. Similarly, turnovers in the industrial division, where the group is invested in companies associated with steel pipe-making and ready-mix and quarrying operations, were also somewhat depressed because of the unfavourable economic climate.

 

Despite the difficult economic environment that exists in South Africa today, Wylie said he remains optimistic that WBHO will have another good year.

 

Ends

 

ISSUED BY:            MOTIV INVESTOR COMMUNICATIONS

                                 Graham Fiford Tel: 011 305 – 7312

ON BEHALF OF:          WILSON BAYLY HOLMES OVCON TD                         

Mike Wylie Tel: 011 321 7200