Johannesburg - Construction group Basil Read Holdings [JSE:BSR]
on Thursday reported a 16% rise in revenue to R5.4bn for the year ended December 2010.
Diluted headline earnings per share (HEPS) dropped to 209.25c from 332.43 cents a year ago. Operating profit was down 5% to R408.7m from R429.2m in the previous corresponding period.
The group declared a final dividend of 30 cents per share, which, together with interim dividend, amounted to 72 cents.
It described the period under review as one of two halves, with the first half characterised by higher activity amid final preparations for the 2010 FIFA World Cup and confidence at the economic recovery.
In the second half, confidence waned in line with sharply decreased activity levels in many sectors as it became evident that the economic recovery would be protracted, exacerbated by the strength of the rand against those of major trading partners.
"A strong order book and equally strong relationships with clients, suppliers and subcontractors again enabled the group to manage these conditions effectively," it said.
Its order book stands at R8.5bn.
Margins came under pressure with the gross operating margin decreasing slightly from 15.3% in 2009 to 15.1% for 2010.
Overhead costs increased by 23%, largely driven by the under recovery of staff costs in the TWP group, and much of the year ahead will be focused on efforts to contain these costs. Basil acquired the TWP group for a provisional purchase consideration of R661.4m in 2009.
Further affecting the results was the amortisation of intangible assets, which was at R39.3m, almost double the amortisation charge of R20.5m reported in 2009.
Cash on hand at the reporting date was R1bn, compared with R1.2bn in 2009.