PRETORIA – Listed construction and engineering group WBHO is anticipating casualties in the listed construction sector.
Mike Wylie, the chairperson of WBHO, said yesterday that there was not much opportunity for consolidation in the sector because there was not enough work.
Louwtjie Nel, the chief executive of WBHO, said there was no doubt that more businesses would disappear. “We have already seen two or three going into liquidation, and a few more into business rescue,” he added.
This was a reference to Cape-based NMC Construction going into liquidation in January and Basil Read Construction, Esor Construction and Gauteng-based privately-owned Liviero Group all going into business rescue, while others were experiencing financial difficulties, including Aveng and Group Five.
Wylie said he never thought he would see what had recently happened in the industry, with two of the seven listed construction companies, WBHO and Raubex, accounting for 95 percent of the market capitalisation of the entire industry.