MARKET UPDATE: JUNE 2019
The directors of Wilson Bayly Holmes-Ovcon Limited (‘WBHO’ / ‘the group’) wish to advise shareholders of
developments within the group during the second half of the financial year ending 30 June 2019.
The group delivered disappointing results over the first six months of the financial year principally due to the recognition of a provision in respect of anticipated future losses on the Western Roads Upgrade (WRU) project (previously referred to as OSAR) in Australia.
The operating performance of the group over the first six months of the financial year will be negatively affected upon the recognition of a material provision in respect of the anticipated loss to complete the OSAR Western Roads infrastructure project in Australia. The completion of contract anticipated loss is due to the interpretation of the technical specifications within the contract bid design resulting in the underestimation of the physical construction works required under the design and construct contract. The Group is investigating all possible recoveries.