Wilson Bayly Holmes – Ovcon Ltd
(Incorporated in the Republic of South Africa)
(Registration number 1982/011014/06)
Share code: WBO ISIN: ZAE000009932
(“WBHO” or “the Company” or “the Group”)
The board believes it is appropriate to advise shareholders of the following developments
The Group’s order book increased to R23,5 billion compared to R22,8 billion as at December 2012. The percentage order book split by segment is illustrated below:
|April 2013||December 2012|
|Building and Civil||31%||31%|
|Roads and Earthworks||18%||21%|
The Group has been able to consistently secure new projects in all segments of the business other than in the West African Region. The volatility of iron ore and gold commodity prices has slowed development of mines in the region. WBHO is the preferred contractor for certain civil packages on the Mayoko Iron Ore Project in the Republic of Congo. The formal award of the first package has been received with a commencement date of the 6 June 2013. The award of the remaining packages should alleviate the work procurement pressures in West Africa.
Operational and Segmental Update
Building and Civil Engineering
The building divisions in all regions’ margins remain under pressure but are performing well in the current environment. The civil division has been affected by the slowdown in mining related infrastructure but has been successful in securing work in Zambia and Botswana.
Roads and Earthworks
The division has generally performed well in all the African regions it operates in. Payments for the Free State roads projects are being received in terms of the agreement with the Free State Provincial Government.
The Probuild business has been negatively impacted by 3 projects which are behind program resulting in excessive costs to complete, however, the balance of the business, in a very competitive environment, has performed adequately. The positive outcome of possible claims relating to these projects will not be resolved in the financial year ended 30 June 2013. WBHO Civil’s execution of projects has improved but the business is affected by the slowdown in mining related infrastructure activities in Australia.
Capital Africa Steel
WBHO has not yet reached agreement with the Competition Commission with respect to its Fast Track Settlement investigations into historical anti-competitive practices in the construction industry. WBHO is not able to confirm the accuracy of the administrative penalty provision accounted for in the prior year.
By order of the board
07 June 2013
Date: 07/06/2013 03:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (‘JSE’). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.