Wilson Bayly Holmes-Ovcon (WBO) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 16% to R27.526bn and operating profit increased 27% to R1.415bn; group operating profit after tax exceeded R1bn for the first time.

• African operations delivered record revenue of R22bn and record profitability of R1.3bn; R1.7bn of shareholder equity was restored over two years and dividend payments resumed.

Financial highlights

• Net profit for the year was R1.049bn versus R834m; profit after tax was R1.053bn, with a R5m loss from discontinued operations.

• Continuing-operations EPS increased 10% to 1,854 cents and headline EPS rose 19% to 2,021 cents; ordinary dividend per share was 460 cents.

• Revenue grew 60% over two years; operating profit before non-trading items was R1.415bn versus R1.112bn.

Outlook and guidance

• Group order book was R30.599bn at 30 June, down 6%; R20.675bn is scheduled for 2025 and R9.924bn beyond 2025.

• R35bn of projects were bid upon with a good chance of success; the total project pipeline reached R259.341bn versus R211.763bn.

• Road, energy and water infrastructure spending in South Africa supports the pipeline; the UK market appears poised for growth.

• Outlook cites stabilising inflation, improving domestic and global growth, prospective interest-rate cuts and elevated order-book levels.