Wilson Bayly Holmes Ovcon (WBHO) has posted strong earnings for the first half of the financial year, driven by growth in its roads and earthworks division. Revenue from continuing operations rose 10% to R14.7 billion, while operating profit increased by 15% to R695 million. The company’s total profit jumped to R604.9 million, up from R521.4 million, with headline earnings per share (HEPS) climbing to 1,072 cents from 897 cents. Shareholders will receive an interim dividend of 300 cents per share, marking a 30% increase.
WBHO has continued to recover after its 2022 exit from Australia, where it suffered significant financial setbacks. The group’s order book grew 7% to R32.6 billion, reflecting strong project demand. South African operations performed well, with revenue increasing by 14%, fueled by construction growth in the Western Cape and KwaZulu-Natal. While building activity in Gauteng softened, the company remains optimistic about its future pipeline.
The company’s operations across Africa contributed to moderate growth, with revenue from the region rising 8.5% to R1.8 billion. Projects are ongoing in countries such as Ghana, Mozambique, Tanzania, Botswana, and Zambia. WBHO’s roads and earthworks division led growth with a 19% revenue increase, while the building and civil engineering division saw moderate growth of 8%.
In the UK, WBHO noted a decline in business confidence following the election of the Labour government, leading to reduced investment activity. However, the company remains well-positioned for the short term, with a strong base of work in Africa and a promising project pipeline. It expects the UK market to improve once interest rates and inflation stabilize, creating better conditions for economic growth.