Esor, a small construction group, says municipal elections negatively affected revenues in the six months to August.
Project delays caused by community unrest had cost the group three months of production, it said. The order book of R1.4bn remained largely dependent on government, municipal and parastatal work. Projects had been affected by late payments linked to the elections.
“Most of this has been resolved,” CEO Wessel van Zyl said on Thursday.
Revenues were 13.8% lower, at R666m, than in the previous interim period. Profit for the period was up 21.7% to R7.5m, with headline earnings per share rising by 6.8% to 2.15c.
Welding quality issues on the group’s Northern Aqueduct water pipeline project in KwaZulu-Natal had also affected profits. The work should have been completed in September 2015. “We will now hand over the pipeline to the client in February 2017,” Van Zyl said. The project made up about 10% of the group’s pipeline work.
A recent restructuring had seen Esor divided into two operations — Esor Construction and Esor Developments. The former was subdivided into the geographical areas of Johannesburg and Polokwane, Durban, Cape Town and African operations.
Esor said its building and housing business focused on commercial and retail refurbishments, as well as construction of lower-end housing.
source: Business Day