Wilson Bayly Holmes – Ovcon Limited (WBHO) has recently released a trading statement that paints a promising picture of its financial performance for the year ending June 30, 2023. The company is confident that its upcoming financial results will reveal a substantial improvement compared to the previous corresponding period.
The South African construction industry has faced its share of challenges in recent years, including economic uncertainties and the impact of the COVID-19 pandemic. Against this backdrop, WBHO’s positive trading statement has garnered attention as a potential beacon of hope for the sector.
WBHO’s management is anticipating remarkable growth in key financial metrics for the reporting period ending June 30, 2023. The company’s operating profit is projected to rise by more than 25% in comparison to the prior period. Furthermore, the revenue is expected to see a significant increase of at least 30% compared to the previous reporting period.
This substantial growth can be attributed in part to a notable improvement in the company’s work procurement. The order book, which indicates the value of projects that have been secured but not yet completed, has experienced an impressive surge of 47% compared to the previous period. This growth underscores WBHO’s success in securing new projects and expanding its business operations.
While the financial outlook is predominantly positive, the trading statement also acknowledges certain challenges that the company has encountered. WBHO’s efforts to exit the Australian market have progressed slower than expected. Despite this setback, the company has made the strategic decision not to alter the increased exit costs that were reported at the end of December 2022 for the reporting period ending June 30, 2023. This measured approach aims to ensure the company’s financial stability and resilience in the face of market uncertainties.
The Board of Directors at WBHO has provided valuable insights into the expected variations in earnings per share (EPS) and headline earnings per share (HEPS) for the reporting period ending June 30, 2023. The anticipated ranges are outlined in the table below:
|30 June 2023 (%)
|30 June 2022 (cents)
|Attributable Earnings Per Share
|25% to 30% up
|1,629 to 1,700
|Headline Earnings Per Share
|27% to 33% up
|1,648 to 1,725
|Attributable Earnings/Loss Per Share
|135% to 138% up
|1,442 to 1,544
|Headline Loss/Earnings Per Share
|139% to 141% up
|1,440 to 1,525
The eagerly awaited official financial results for the year ending June 30, 2023, are scheduled to be unveiled on September 12, 2023. These results will be published on the JSE’s Stock Exchange News Service (SENS), providing shareholders and the broader financial community with a comprehensive overview of WBHO’s performance during the reporting period.
It’s important to note that the financial information forming the basis of this trading statement has not yet been reviewed or reported on by WBHO’s external auditors. As such, these projections are subject to change pending the completion of the auditing process.
WBHO’s Board of Directors stands behind the accuracy and completeness of the information presented in this announcement. They assert that, to the best of their knowledge and belief, the information is accurate and complete, without any omissions that could impact the significance of the information shared.