Esor interim results August 2016
Revenue lowered to R666.3 million (2015: R772.6 million), gross profit fell to R21.2 million (2015: R51.5 million ), Profit before interest, tax, amortisation, impairments and depreciation decreased to R23.1 million (2015: R29.6 million), while profit for the period was higher at R7.5 million (2015: R6.2 million). Furthermore, headline earnings per share grew to 2.15 cents per share (2015: 2.01 cents per share).
In line with group policy no dividend has been declared (2015: Nil). It remains the policy of the group to review the dividend policy annually in light of cash flow, gearing, capital requirements and bank covenants.
The current challenging market conditions are not expected to change in the short term. Nonetheless, Africa and specifically the SADC countries offer good growth prospects. We are currently completing nine pipejacks in Botswana with the possibility of additional works and are commencing with our largest piling job in Harare, Zimbabwe for Old Mutual. We also continue to actively tender in Swaziland and Zambia.
Work on hand has decreased marginally to R1.4 billion compared to R1.6 billion for the comparative period. However, there are a number of imminent outstanding awards which could positively boost the order book to R2.5 billion. Cash conversion rates from this pipeline will remain a challenge taking into account the secured margin and commercial terms.