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Johannesburg - Construction firm Wilson Bayly Holmes - Ovcon [JSE:WBO] posted a 19% drop in half-year profit, hurt by the slowdown in construction after the World Cup boom, and cautioned about the outlook for 2012.
WBHO, South Africa's third-largest construction firm, said diluted headline earnings per share totalled 676.3 cents in the six months to end-December compared to 836.7c in the same period last year.
The company said its order book stood at R13.1bn at the beginning of 2011 versus R12.3bn.
"The outlook for the remainder of this financial year and full-year 2012 is still of concern; however, we believe that we are well positioned to cope with the situation," it said. WBHO said its revenue was down 5.8% to R7.2bn.
The South African construction industry avoided the worst of the economic downturn due to big infrastructure projects related to the 2010 Fifa World Cup.
However, companies now need to replenish their order books as funding shortfalls have caused firms such as power utility Eskom to delay or suspend construction projects.
Construction companies are also the target of a bid-rigging probe from the competition authorities, putting their shares under further pressure.
WBHO, South Africa's third-largest construction firm, said diluted headline earnings per share totalled 676.3 cents in the six months to end-December compared to 836.7c in the same period last year.
The company said its order book stood at R13.1bn at the beginning of 2011 versus R12.3bn.
"The outlook for the remainder of this financial year and full-year 2012 is still of concern; however, we believe that we are well positioned to cope with the situation," it said. WBHO said its revenue was down 5.8% to R7.2bn.
The South African construction industry avoided the worst of the economic downturn due to big infrastructure projects related to the 2010 Fifa World Cup.
However, companies now need to replenish their order books as funding shortfalls have caused firms such as power utility Eskom to delay or suspend construction projects.
Construction companies are also the target of a bid-rigging probe from the competition authorities, putting their shares under further pressure.
