Basil Read records R820m loss

30 March 2015

A challenging construction sector, difficult contractual environment and poor operational performance have contributed to Basil Read reporting an R820.9-million aftertax loss for the year ended December 31, 2014.

“Lossmaking contracts across all construction disciplines, coupled with a struggling engineering division, have overshadowed stable performances by the mining and developments divisions,” CEO Neville Nicolau said in a statement on Friday.

The company’s financial results were further impacted by a R304.4-million impairment of goodwill and an R80.6-million write-down of development land relating to the company’s investment in Rolling Hills Leisure Estate.

Cash balances reduced to R835.7-million, largely owing to the company funding lossmaking contracts.

Liquidity remained tight but was being actively managed to ensure Basil Read continued to operate effectively.

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