WILSON BAYLY HOLMES – OVCON LIMITED
Building and civil engineering contractors
(Registration no. 1982/011014/06)
ISIN No: ZAE 000009932
Share code: WBO
(“WBHO” or “the Company”)
Subsequent to the business update released on SENS in June 2014 in which shareholders were advised of the effects of production constraints and poor trading conditions on the value of non-current assets within the pipe mill, Capital Star Steel, as well as concerns over the future viability of the business, a decision was reached to either sell or close the operation. The shelving and racking businesses, Symo (a division within Capital Africa Steel (Pty) Ltd) and Krost Shelving (Pty) Ltd were also both disposed of during the year and, pending certain conditions precedent, an agreement has been concluded in respect of the sale of Dywidag-Systems International (Pty) Ltd, the business supplying roof bolts to the mining sector. As a result these businesses will be disclosed as discontinued operations in the upcoming release of results.
Thus the directors of Wilson Bayly Holmes-Ovcon Ltd hereby advise shareholders that in respect of the consolidated results for the year ended 30 June 2014, earnings per share from continuing operations will increase by between 10% and 20% while headline earnings per share from continuing operations will increase by between 5% and 15%.
Earnings per share will decrease by between 25% and 35% while headline earnings per share will be in a range of between -5% and 5% of that of the comparative period.
This statement has not been reviewed or reported on by the company’s auditors.
The financial results for the year to 30 June 2014 are expected to be released on SENS 1 September 2014.
By order of the board
18 August 2014
Sponsor: Investec Bank Limited