WBHO Reports Strong Financial Performance and Declares Dividend Amidst Challenging Economic Climate

Wilson Bayly Holmes – Ovcon Limited (WBHO) has announced its unaudited interim financial statements and cash dividend declaration for the six months ending 31 December 2023. Despite facing persistent economic challenges, the company reported a robust financial performance, with significant growth in revenue and earnings.

According to the financial highlights, revenue from continuing operations for the period surged by 29% to R13 billion compared to R10 billion in the previous year. Earnings per share from continuing operations increased to 915 cents from 829 cents in December 2022. Moreover, earnings per share from total operations rose to 906 cents from 641 cents, while headline earnings per share from total operations climbed to 897 cents from 630 cents.

Dividend Declaration

In a move to reward shareholders, the Board of Directors has declared an interim gross dividend of 230 cents per share, a considerable jump from nil cents per share in 2022. This dividend is payable to all shareholders recorded in the register on Friday, 26 April 2024.

However, it’s noteworthy that the dividend is subject to dividend withholding tax of 20%, resulting in a net dividend of 184 cents per share. The company’s tax reference number is 9999597710. Shareholders should take note of the relevant dates regarding the dividend payment:

During the period, WBHO maintained a strong order book, which remained consistent at R32.3 billion, demonstrating sustained growth opportunities. The company’s businesses in the United Kingdom also showed improved performance, albeit being impacted by economic factors affecting certain sectors.

Operational Insights

WBHO attributes its strong financial performance to the high order book levels secured in Africa, which translated into increased activity across all divisions. The company’s ability to sustain its African order book alongside elevated levels of work execution underscores its resilience in navigating challenging market conditions.

Challenges and Opportunities

Despite the positive financial indicators, WBHO acknowledges the challenges posed by persistent economic factors, particularly in the UK market. However, the company remains optimistic about growth prospects and is committed to closely monitoring working capital requirements to support continued expansion.

Conclusion

WBHO’s interim financial results reflect its resilience and strategic focus amidst a challenging economic environment. The declaration of a dividend underscores the company’s commitment to delivering value to its shareholders. As WBHO continues to navigate market dynamics, investors are encouraged to base their decisions on the full announcement available on the company’s website.