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Basil Read rallies on profit news

Jan 22 2009 15:31

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Johannesburg - South African construction firm Basil Read Holdings Ltd said on Thursday it expected to report a 55% to 75% increase in annual earnings per share and headline EPS, boosting its shares 6%.

The company also said in a statement its order book stood at R6.2bn.

Its shares rose as much as 7% after the statement, and gained 2.74% to R15 by 14:49, outpacing a 0.8% firmer Johannesburg All-share index.

South African construction companies have been somewhat cushioned from the global financial crisis thanks to a government infrastructure push and a slew of building projects linked to the 2010 soccer World Cup.

However they have started to report cancelled contracts and slower growth, particularly in the hard-hit mining sector and in the Middle East, where the Gulf building boom is unravelling.

Construction and engineering firm Group Five, for example, said on Wednesday it expected a 50% rise in first-half earnings but that its business in the Middle East was under pressure.

Headline EPS, the main profit gauge in South Africa, strips out certain financial, non-trading and one-off items.

- Reuters

 
 
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