| Esorfranki expects earnings to halve - 2010/07/16 | |
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News Article: 5860 has been read 207 times. |
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| Johannesburg - Civil engineering and construction group Esorfranki [JSE:ESR] on Friday advised that it expects basic and headline earnings per share for the six months ending August 31 2010 to be less than 50% of those achieved in the previous corresponding period. "As reported in our latest presentation to the market during May 2010 we indicated that the first half of 2011 financial year will be slow," the group said. In May Esorfranki reported a 20.5% increase in full year diluted headline earnings per share to 70.5 cents from 58.5 cents previously. After tax profit grew 37.8% to R197.6m for the 12 months to end February 2010, from R143.4m for the year to end February 2009. Esorfranki said the performance in the first half of the 2011 financial year had been severely impacted by the protracted delay in the award of certain contracts, adverse economic trading conditions in sub-Saharan Africa, a slowdown in sector-related economic activity due to the Soccer World Cup, excessive rainfall in the Gauteng region, a decrease in operating margins due to lower activity levels on certain contracts; and once-off costs relating to activity-appropriate restructuring initiatives. The group said its order book remained stable at about R1.6m of which approximately R150m had been deferred to the 2012 financial year due to the above factors. "With its diversified services offering, and geographical split, the group will continue to explore further opportunities in sub-Saharan Africa," it said. Looking ahead Esorfranki said it remains positive that the second half of the 2011 financial year would be in line with the corresponding period. |
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| Source: Fin24 | Date: 2010/07/16 |
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