Johannesburg - Listed civil engineering and construction group Esor is targeting specific work outside of South Africa for growth, because the challenging local market conditions are not expected to abate in the short term.
Wessel van Zyl, the chief executive of Esor, said yesterday that Africa, and specifically the Southern African Development Community, offered the group solid prospects with projects currently under way in Botswana, Zimbabwe and Swaziland.
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Van Zyl added that there was the possibility of additional work in these countries. “While work on hand is down marginally to R1.4 billion, there are a number of outstanding imminent awards that could boost the order book to R2.5bn,” he said.
Esor yesterday reported a 6.8 percent growth in headline earnings a share to 2.15 cents in the six months to August from 2.01c in the previous corresponding period. Profit increased by 21.7 percent to R7.5 million, despite revenue declining by 13.8 percent to R666.3m. Van Zyl attributed the revenue decline to various project delays caused by community unrest in the run-up to the local municipal elections and having to deploy further resources to address quality issues on the Northern Aqueduct project in Ethekwini. A dividend was not declared. Esor shares closed unchanged at 37c yesterday.
BUSINESS REPORT