CAPE TOWN – WBHO, once a darling among construction companies, said on Monday that headline earnings per share could fall between 30 percent and 40 percent in the year to June 30 after a project in Melbourne, Australia, soured.
The share price tumbled 4.1 percent to R103.11 per share by Monday afternoon, a large drop for a company that has managed to keep its share price relatively steady in the face of dramatic slumps in the share prices of peers that once dominated the industry.
The JSE’s construction and materials index was only down 1.2 percent at the same time on Monday.
“The forecast loss position on the Western Roads Upgrade (WRU) project in Melbourne, Australia… has negatively affected the operating performance of the group in the current financial year,” WBHO management said in a trading statement.
The retirement of chairperson Mike Wylie was also announced. After 45 years, he would retire at the annual general meeting to be held on November 20, a statement said.