Construction group Wilson Bayly Holmes-Ovcon (WBO) expects full-year headline earnings per share from continuing operations to rise 20%-30%‚ it says in a Sens statement filed on Friday morning.
It attributed the increase to “normalised earnings generated from Australia”.
A much smaller increase in HEPS from total operations is expected — of between 5% and 15% — when it reports results on September 5‚ which it said was because of a loss on the sale of Capital Star Steel (CSS).
Companies in the struggling construction sector have been selling weaker assets to focus on their core strengths. With the local and global steel markets in the doldrums‚ steel assets have been among those targeted for disposal.
WBHO sold CSS‚ the Mozambican steel operation housed in subsidiary Capital Africa Steel‚ to Lion Steel for more than R500m earlier this year in a deal that also involved debt restructuring.
WBHO has changed its focus in Australia‚ shifting to the construction of residential buildings amid a boom in that sector.