THE WBHO headquarters building in Sandton, Johannesburg. The group declared an unchanged dividend of 300 cents a share for the six months to December 31, 2025..
Image: Simphiwe Mbokazi African News Agency (ANA)
Wilson Bayly Holmes - Ovcon’s share price plunged 16% to R178,26 on Tuesday after it declared flat earnings for the year to December 31, 2025 after building operations suffered from a big drop in activity in Gauteng and lower mining related civil engineering work
The group, one of South Africa’s largest construction and engineering groups, said revenue from continuing operations fell by 4% to R14 billion, while operating profit from continuing operations decreased by 3% to R676 million.
“High activity levels in South Africa were supported by the roadwork and renewable energy sectors and continued strength in the Western Cape building market. Mining infrastructure projects in West Africa and Zambia, and roadwork and gas-infrastructure projects in Mozambique, were behind a solid performance on the remainder of the continent,” the directors said.
The UK operations had also performed satisfactorily amid subdued economic conditions.
Headline earnings per share came to 1,086 cents from 1,072 cents last year. The order book decreased 3% to R36,4bn. The interim dividend was held at 300 cents per share.
Revenue from South Africa decreased by 8% to R9,5bn while revenue from the rest of Africa was steady at R1,7bn. A strong first six months from Russell WBHO in the UK supported 9% growth in the region, to revenue of R2,8bn.
The combined African operations delivered a segment operating profit of R657m down from R684m at December 31, 2024. The operating margin in Africa improved to 5.9% from 5.7%. The operating margin in the UK improved to 3.6% from 3%.
The group said building activity fell by 21% compared to the prior six-month period. Activity within the coastal regions grew by 7% while activity levels in Gauteng dropped by a substantial 55% as several large projects reached completion without being replaced.
Under-utilised Gauteng teams were deployed to support the building division in the Western Cape where demand was high, and several new projects were secured.
Activity in Gauteng was centred on upgrades to the South African Reserve Bank, the fit-out phases of the Steyn City apartments and completion of a data centre in Midrand for Vantage.
Other projects include the upgrade of the Siloam district hospital in Limpopo and construction of a new warehouse at the Longlake Logistics Park in Modderfontein.
In the coastal regions, growth was underpinned by an expanding building market in the Western Cape. Development at the V&A Waterfront, Century City and Riverlands precinct provided a strong source of projects. Student housing in Stellenbosch and two commercial developments in the Cape Town city centre also supported activity in the region.
The division completed a new 220-bed Mediclinic hospital in George, together with a team from the Eastern Cape building division.
In the public sector, the division secured additional projects through its participation in frameworks for both the Education and Health departments of the Western Cape.
In Kwa-Zulu Natal (KZN), projects within the industrial and warehousing sector, followed by the residential and commercial sectors were the primary activity drivers. Smaller projects in the retail and healthcare sectors also contributed.
A large commercial office development on Umhlanga Ridge was completed and the Oceans South Residential Tower made steady progress. The KZN team has also supported two projects in the Western Cape with additional management and resources.
Construction of the Capital Hotel and a new Life hospital in Gqeberha, together with construction of the operations centre and ancillary buildings for the South African Radio Astronomy Observatory (SARAO) in Klerefontein supported activity in the Eastern Cape. In the rest of Africa, the division completed a data centre in Ghana.
In civil engineering, activity includes projects from traditional civil engineering markets as well as the construction of renewable energy projects. The delayed award of certain projects and lower levels of mining infrastructure work impacted activity levels in the traditional civil engineering market which declined by 13%.
BUSINESS REPORT