Wilson Bayly Holmes-Ovcon (WBO) H1 2025 earnings summary

Executive summary

• Continuing-operations revenue rose 10.2% YoY to R14.658bn; operating profit before non-trading items was R762m, with a 5.2% segment margin.

• Group order book increased 7% to R32.644bn at 31 December 2024, supporting near-term prospects in Africa; UK conditions remained subdued.

• Basic EPS from continuing operations rose to 1,080.2 cents and headline EPS to 1,072 cents; interim dividend increased 30% to 300 cents per share.

Financial highlights

• Revenue was R14.658bn versus R13.299bn; operating profit from continuing operations was R695.1m versus R602.4m after share-based payment expense and goodwill impairment.

• Profit before tax increased to R842m from R727m; profit from continuing operations was R604.9m versus R526.1m, and attributable profit was R572m versus R482.2m.

• Cash generated from operations increased to R1.098bn from R526m; net cash from operating activities was R917.7m versus R487.2m.

• Cash and cash equivalents were R4.023bn at 31 December 2024, up R363m from June 2024.

Outlook and guidance

• The R32.644bn order book included R12.292bn scheduled for execution by 30 June 2025 and R20.352bn scheduled beyond that date.

• Potential H2 FY2025 awards totalled R13.1bn in Roads and Earthworks and R9.4bn in Projects; a R2.8bn N2 award received in January was not in the reported order book.

• African operations had a large work base and robust pipeline; UK activity was expected to remain subdued pending lower rates and stable inflation.

• Financial close for the R5bn Khauta South and West solar farms was expected by Q3 FY2025, with construction expected to start in FY2025 Q4; a large water scheme was expected to reach financial close in H2 FY2025.