Wilson Bayly Holmes-Ovcon (WBHO) has announced impressive financial results for the fiscal year ending on June 30, 2023. Despite encountering losses from discontinued operations, the company reported significant growth in its continuing operations, demonstrating resilience and strength in a challenging economic environment.
WBHO reported a remarkable 38% increase in revenue for the year, reaching R24 billion compared to R17 billion in the previous year. This substantial growth can be attributed to the success of its continuing operations, particularly in the construction sector. The company’s earnings per share increased by 29% to 1,679 cents per share, while headline earnings per share saw an even more impressive rise of 31% to 1,703 cents per share.
Investors will be pleased to note that WBHO’s net asset value has also grown substantially, amounting to R3.9 billion in 2023, compared to R2.9 billion in the previous year. These robust financial indicators suggest a promising outlook for the company’s future.
While WBHO’s continuing operations have thrived, the company did experience challenges in its discontinued operations, resulting in a loss of R101 million. However, it’s worth noting that this loss is significantly lower than the R1.9 billion loss recorded in the previous year, marking a 96% improvement. Loss per share from discontinued operations decreased by the same percentage, falling to 189 cents per share compared to 5,365 cents per share in 2022.
When considering both continuing and discontinued operations, WBHO has demonstrated a remarkable turnaround. Total earnings per share increased by a staggering 137% to 1,490 cents per share, a significant improvement from the loss per share of 4,062 cents reported in the previous year. Similarly, headline earnings per share increased by 141% to 1,514 cents per share, up from a loss per share of 3,693 cents in 2022.
WBHO’s success in the fiscal year can be attributed to its strong performance across various segments. Here is a breakdown of segment revenue and operating profit for June 2023 compared to June 2022:
| Segment | Revenue (June 2023) | Revenue (June 2022) | Operating Profit (June 2023) | Operating Profit (June 2022) |
|---|---|---|---|---|
| Building and Civil Engineering | R10,890,875,000 | R7,498,139,000 | R504,401,000 | R342,356,000 |
| Roads and Earthworks | R6,856,800,000 | R4,712,677,000 | R449,561,000 | R322,092,000 |
| United Kingdom | R4,987,904,000 | R4,209,894,000 | R117,453,000 | R157,503,000 |
| Property Developments | R24,548,000 | R16,717,000 | R18,297,000 | R18,529,000 |
| Construction Materials | R918,620,000 | R802,851,000 | R22,844,000 | R18,488,000 |
| Total Revenue from Continuing Ops | R23,768,747,000 | R17,240,278,000 | – | – |
| Total Operating Profit (Cont. Ops) | R1,071,415,000 | R821,951,000 | – | – |
Figures in South African Rands (ZAR)
These numbers underscore the strength of WBHO’s core construction and engineering business, with significant revenue and profit growth in several key segments.
WBHO’s 2023 financial results are a testament to its resilience and strategic focus on its core business operations. While challenges were faced in discontinued operations, the company’s continuing operations experienced robust growth, resulting in impressive earnings and substantial increases in both revenue and profit. As WBHO looks to the future, these positive financial indicators suggest a promising outlook for the company and its investors in the South African market.
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