Basil Read surges more than 8% on results

Shares in construction and engineering group Basil Read Holdings (BSR) surged more than 8% last week Thursday after the company’s results showed a return to profitability. File Photo: CEO Marius Heyns

Shares in construction and engineering group Basil Read Holdings (BSR) surged more than 8% last week Thursday after the company’s results showed a return to profitability.

The company said operating profit from continuing operations grew to R80.2m in the six months to June 2013 from a loss of R14.3m in the same period a year ago. Revenue climbed to R3bn in the interim period from R2.7bn in June 2012.

“The market was expecting the group’s revenue to come in at around R2.7m‚ little changed from 2012 but they managed to deliver strong interim results despite the tough patch the local construction industry is going through‚” Investec Asset Management’s‚ head of equity dealing for emerging markets‚ Ryan Wibberley said.

“Basil Read’s pleasing results have been achieved despite the tough trading environment in the South African construction sector and the continued slow roll-out of projects‚ endemic labour unrest and difficult contractual environment which have proven challenging and have contributed to margins remaining compressed‚” CEO Marius Heyns said

On Wednesday‚ Murray and Roberts (MUR) also reported improved profits with headline earnings per share climbing to 186c for the year ended June 2013 from a loss of 246c in the previous comparable period

At 3.36pm‚ Basil Read’s share price was up 6.79% to R7.90 with Murray and Roberts lifting 3.30% to R24.74.