Wilson Bayly Holmes-ovcon Limited · JSE:WBO
Wilson Bayly Holmes-ovcon — H1 FY2024 Earnings Presentation
36 slides from Wilson Bayly Holmes-ovcon's earnings presentation, February 2024
Slide 1: Unaudited Interim Results for the Six Months Ended 31 December 2023
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2023
Slide 2: Contents
CONTENTS 1 OPERATIONAL REVIEW 2 FINANCIAL REVIEW DISCLAIMER: THIS PRESENTATION IS BEING RECORDED. 3 ORDER BOOK, PIPELINE AND YOUR CONTINUED ATTENDANCE AT THE PRESENTATION CONFIRMS YOUR CONSENT OUTLOOK 2
Slide 3: Operational Review
OPERATIONAL REVIEW 1 ESG PERFORMANCE 2 BUILDING AND CIVIL ENGINEERING 3 ROADS AND EARTHWORKS 4 UNITED KINGDOM 3
Slide 4: ESG Performance
ESG PERFORMANCE H1:FY2024 PERFORMANCE LOST TIME INJURY FREQUENCY RATIO (LTIFR) • Safety is our primary and most important objective within 1.0 WBHO • Our priority is to ensure that all persons, comprising our employees, clients, subcontractors and suppliers, that enter 0.8 our sites are safe and ret
Slide 5: Building and Civil Engineering
BUILDING AND 1 H1:FY2024 PERFORMANCE 2 GEOGRAPHIC ANALYSIS CIVIL ENGINEERING 3 ORDER BOOK 5
Slide 6: Building and Civil Engineering: H1 FY2024 Performance
BUILDING AND CIVIL ENGINEERING H1:FY2024 PERFORMANCE • Revenue increased by 19% and was consistent with the elevated levels of H2:FY2023 7,000 400 • Operating profit is up by 5% at a margin of 4.5% 6,066 5,836 BUILDING 6,000 • Revenue increased by 9% 4,915 - 14% growth in Gauteng 5,000 300 - 6% grow
Slide 7: Building and Civil Engineering: Geographic Performance
BUILDING AND CIVIL ENGINEERING GEOGRAPHIC FOOTPRINT GEOGRAPHIC PERFORMANCE 9,000 5,720 4,773 6,000 REVENUE (Rm) 3,000 142 116 0 H1 2024 H1 2023 SOUTH AFRICA REST OF AFRICA 400 OPERATING PROFIT (Rm) 300 251 246 200 100 10 2 0 H1 2024 H1 2023 SOUTH AFRICA REST OF AFRICA 7
Slide 8: Building and Civil Engineering: Order Book
BUILDING AND CIVIL ENGINEERING ORDER BOOK UP 1% 31 December 30 June % • Order book sustained at elevated levels 2023 2023 change • Several projects in excess of R1 billion continue to provide a healthy South Africa 12 686 12 509 1 baseload of work Rest of Africa 433 438 (1) • Building order book sof
Slide 9: Roads and Earthworks
ROADS AND 1 H1:FY2024 PERFORMANCE 2 GEOGRAPHIC ANALYSIS EARTHWORKS 3 ORDER BOOK 9
Slide 10: Roads and Earthworks: H1 Performance
ROADS AND EARTHWORKS H1:FY2023 PERFORMANCE SOUTH AFRICA • Revenue increased by 60% while operating profit 5,000 400 increased by 73% 4,236 4,196 • Strong contribution of 37% from mining infrastructure projects • Roadwork contributed 42% 4,000 - Large-scale Sanral projects have mobilised and 283 282
Slide 11: Roads and Earthworks: Geographic Performance
ROADS AND EARTHWORKS GEOGRAPHIC FOOTPRINT GEOGRAPHIC PERFORMANCE 4,000 2,804 3,000 REVENUE (Rm) 1,760 1,432 2,000 901 1,000 0 H1 2024 H1 2023 SOUTH AFRICA REST OF AFRICA 200 154 OPERATING PROFIT (Rm) 150 128 100 89 78 50 0 H1 2024 H1 2023 SOUTH AFRICA REST OF AFRICA 11
Slide 12: Roads and Earthworks: Order Book
ROADS AND EARTHWORKS ORDER BOOK DOWN 5% 31 December 30 June % • South African order book levels maintained and outlook remains promising 2023 2023 change - Lowest on two Sanral tenders valued in excess of R5 billion South Africa 12 124 12 228 (1) - Advanced negotiations for large-scale water supply
Slide 13: United Kingdom
UNITED KINGDOM 1 H1:FY2023 PERFORMANCE 2 GEOGRAPHIC ANALYSIS 3 ORDER BOOK 13
Slide 14: United Kingdom: Performance
UNITED KINGDOM FY2022 PERFORMANCE • Challenging macro-economic conditions affecting the UK 4,000 300 construction market • Elevated inflation and interest rates have lowered project yields and jeopardized feasibilities 2,756 3,000 2,631 • Project suspensions and delays in awards continue to 200 affe
Slide 15: United Kingdom: Geographic Performance
UNITED KINGDOM GEOGRAPHIC FOOTPRINT GEOGRAPHIC PERFORMANCE 4,000 3,000 REVENUE (Rm) 2,003 1,888 2,000 1,000 628 344 0 H1 2024 H1 2023 BYRNE GROUP RUSSELL WBHO 200 OPERATING PROFIT (Rm) 150 100 72 67 50 11 0 ( 18) -50 H1 2024 H1 2023 BYRNE GROUP RUSSELL WBHO 15
Slide 16: United Kingdom: Order Book
UNITED KINGDOM ORDER BOOK UP 5% 31 December 30 June % • Growth in order book attributable to new awards within Russell WBHO 2023 2023 change • Procurement activity difficult to convert into new work Byrne Group 3 630 3 988 (9) Russell WBHO 1 439 817 76 Total 5 069 4 815 5 ORDER BOOK BY SECTOR Dec 20
Slide 17: Financial Review
FINANCIAL REVIEW 1 KEY FINANCIAL INDICATORS 2 FINANCIAL PERFORMANCE 3 FINANCIAL POSITION 17
Slide 18: Continuing Operations – Contribution by Geography
CONTINUING OPERATIONS – CONTRIBUTION BY GEOGRAPHY December December % Dec 2023 Dec 2022 REVENUE 2023 2022 change South Africa 9 050 7 020 29 20% 22% Rest of Africa 1 618 1 078 50 12% 10% United Kingdom 2 631 2 232 18 68% 68% Total 13 299 10 330 29 SEGMENT OPERATING % December % December % Dec 2023 D
Slide 19: Financial Performance
FINANCIAL PERFORMANCE December December June Rm 2023 2022 2023 Revenue 13 299 10 330 23 769 Operating profit before non-trading items 636 482 1 112 Share-based payment expense (34) (20) (55) Operating profit 602 462 1 057 Share of profits from interests in associates and joint ventures 40 94 131 Los
Slide 20: Discontinued Operations
DISCONTINUED OPERATIONS CURRENT POSITION • A$6.5 million of A$7 million in cash secured guarantees recovered and cash refunded, outstanding A$500 thousand still to be recovered but little to no risk • Administration period for the DOCA has been extended to ensure that creditors that may have rights
Slide 21: Key Financial Indicators
KEY FINANCIAL INDICATORS December 2023 December 2022 Target / growth Revenue from continuing operations (%) 28.7 14.9 >10 Segment operating margin from continuing operations (%) 4.8 4.7 4.0 - 6.5 Earnings per share from continuing operations (cents) 915 829 10% Headline earnings per share from conti
Slide 22: Financial Position: Property, Plant and Equipment
FINANCIAL POSITION Property, plant and equipment (Rm) December 2023 June 2023 Property, plant and equipment 2 246 2 111 • The Group adopts a plant replacement policy aimed at ensuring an optimal size and age of its fleet Depreciation (property, plant and equipment) 144 202 • Increased investment in
Slide 23: Financial Position: Associates and Joint Ventures
FINANCIAL POSITION Share of profits Interest in associates Country Effective Carrying December December and joint ventures (Rm) Industry of operation % amount 2023 2022 Construction operations: Edwin Construction Road/civil construction South Africa - - - 4.3 - - 4.3 Concession investments: Gigajoul
Slide 24: Financial Position: Associates and Joint Ventures (continued)
FINANCIAL POSITION Share of profits Interests in associates Country Effective Carrying December December and joint ventures (Rm) Industry of operation % amount 2023 2022 Property developments: Lizcobiz (fomally Catchu Property development South Africa 50 11.9 - - Trading (Pty) Ltd) 19 on Loop (Pty)
Slide 25: Financial Position: Tax
FINANCIAL POSITION December June Tax (Rm) 2023 2023 Net deferred tax asset 432 445 Deferred tax asset consists of: Net current tax asset 210 193 • Tax losses of R58m (June 2023: R70m) • Timing differences of R374m United December December June (June 2023: R375m) Tax expense (Rm) Africa Kingdom 2023
Slide 26: Financial Position: Long-term Liabilities
FINANCIAL POSITION December June Long-term liabilities (Rm) 2023 2023 Property development funding 101 101 • Property development funding raised in respect of student accommodation building in Tshwane SCMB loan 71 170 - Repayment delayed by suspension of sale Asset-based finance 334 277 agreement du
Slide 27: Financial Position: Cash and Cash Equivalents
FINANCIAL POSITION Cash and cash equivalents (Rm) December 2023 June 2023 South Africa 2 108 2 030 • Cash balances remain stable across all geographies Africa 856 838 • Cash generation is healthy United Kingdom 860 817 • R86 million of restricted cash in Mozambique at Total 3 824 3 685 30 June 2023
Slide 28: Financial Position: Cash Flow Movement
FINANCIAL POSITION 5 000 789 143 3,824 3,685 54 4 000 182 263 53 309 38 3 000 2 000 1 000 - Cash & cash Foreign currency Operating profit Working capital Net finance and Taxation Cash flows from Cash flows from Cash flows from Cash & cash equivalents translation effect adjusted for non- changes inve
Slide 29: Order Book, Pipeline and Outlook
ORDER BOOK, PIPELINE AND 1 CONSOLIDATED ORDER BOOK 2 PROJECT PIPELINE OUTLOOK 3 OUTLOOK 29
Slide 30: Consolidated Order Book
CONSOLIDATED ORDER BOOK GROUP ORDER BOOK MAINTAINED 31 Dec 30 June 31 Dec To June Beyond • Group order book sustained at record levels 2022 2023 2023 2024 June 2024 • Resilience across all divisions and key regions South Africa 17 616 24 738 24 810 8 547 16 262 • Potential awards in excess of R13 bi
Slide 31: Project Pipeline: Building and Civil Engineering
PROJECT PIPELINE Building and civil engineering (Rm) South Africa Rest of Africa Total Commercial and mixed-use developments 12 238 1 092 13 330 6% Residential 9 415 - 9 415 Industrial buildings and warehousing 8 599 1 675 10 274 Data centres 7 800 470 8 270 94% Hotels, healthcare and education 11 8
Slide 32: Project Pipeline: Roads and Earthworks
PROJECT PIPELINE Roads and earthworks (Rm) South Africa Rest of Africa Total Roadwork 24 940 4 100 29 040 17% Mining infrastructure 8 300 9 870 18 170 Energy infrastructure 925 8 650 9 575 Water infrastructure 32 000 - 32 000 83% Total 66 165 25 120 91 285 Public 56 940 6 600 63 540 SOUTH AFRICA RES
Slide 33: Project Pipeline: United Kingdom and Summary
PROJECT PIPELINE United Kingdom Rm Byrne Group 33 024 Russell WBHO 8 808 Total 41 832 Summary Rm Building and civil engineering 107 088 Roads and earthworks 91 285 United Kingdom 41 832 Total 240 205 33
Slide 34: Outlook
OUTLOOK • Earnings at best levels in over a decade following growth trajectory • Well-managed liquidity position has allowed for resumption of dividend payments • Good progress made in re-strengthening of the balance sheet • Strong order book and robust pipelines within multiple sectors of the Afric
Slide 35: Disclaimer
DISCLAIMER Certain statements contained within this presentation may be classified as forward-looking statements. Words, including but not limited to, “believe”, “anticipate”, “expect”, “seek”, “intend”, “estimate”, “project”, “plan”, “indicate” or “predict” are used to identify such statements. For
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