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Johannesburg – South African civil engineering and
construction group Protech Khuthele Holdings [JSE:PKH] on Monday reported a
2.6% decline in headline earnings for the six months ended August 2012 to 3.7
cents from the previous corresponding period’s 3.8 cents.
“The market conditions in both the construction and mining
sectors‚ in South Africa and on the rest of the continent‚ remain challenging
and volatile. the depressed state of the markets had a generally negative
impact on work volumes and profit margins throughout the industry and sector‚”
Protech said on Monday.
Revenue increased to R530m from the previous corresponding
period’s R494m.
“The much needed and long awaited infrastructure spend‚ to
which government remains assuredly committed‚ is not reflecting in tender
flows. Competition in the local construction sector continues to be fierce and
the level of confidence in the sector remains low‚” the group said.
Protech’s cash generated by operations jumped by 46.5% to
R111.8m.
The group is confident that the next six months will show a
marked improvement after it secured seven new contracting projects at a value
of R456m.
“Public sector spending is slowly emerging as various levels of government align their capacity to award their budgeted projects. Protech is cautiously gearing its own capacity to participate in this market‚” Protech said.
