Wilson Bailey Homes – Offcon’s share price plunged 16% to R170,826 on Tuesday after the company announced a flat profit for the year to December 31, 2025, with its building business hit by a significant drop in activity in Gauteng and a decline in mining-related civil works.
The group, one of South Africa’s largest construction and engineering groups, announced a 4% decline in revenue from continuing operations to R14 billion and a 3% decline in operating profit from continuing operations to R676 million.
“High activity levels in South Africa were supported by continued strength in the roadworks and renewable energy sectors, as well as the construction market in the Western Cape. Mining infrastructure projects in West Africa and Zambia, and roadworks and gas infrastructure projects in Mozambique supported solid performance in the rest of the continent,” the directors said.
Business in the UK also performed well despite the sluggish economic situation.
Maximum earnings per share were 1,086 cents, compared with 1,072 cents a year earlier. Order intake decreased by 3% to R36.4 billion. The interim dividend remained unchanged at 300 cents per share.
Revenues from South Africa fell 8% to R9.5 billion, while revenues from the rest of Africa remained stable at R1.7 billion. Russell WBHO in the UK had a strong first six months, supporting 9% growth in the region and revenue of R2.8 billion.
Segment operating profit for the Africa business combined decreased by R657 million from R684 million at 31 December 2024. Operating margin in Africa improved from 5.7% to 5.9%. UK operating margin improved from 3% to 3.6%.
The group said construction activity was down 21% compared to the previous six months. While activity within the coastal region increased by 7%, activity levels in Gauteng fell by a significant 55% as several large projects reached completion without being replaced.
An underutilized Gauteng team was deployed to support the Western Cape’s construction sector, which was in high demand, and several new projects were secured.
Activities in Gauteng centered on the upgrade of the South African Reserve Bank, the refurbishment phase of the Steyn City apartment complex and the completion of the data center for Vantage in Midrand.
Other projects include the renovation of Siloam District Hospital in Limpopo City and the construction of a new warehouse at Long Lake Logistics Park in Modelfontein.
In the coastal region, growth was supported by an expanding construction market in the Western Cape. The development of the V&A Waterfront, Century City and Riverland precincts provided a strong source of projects. Student housing in Stellenbosch and two commercial developments in Cape Town city center also supported activity in the area.
The department worked with a team from the Eastern Cape Construction Department to complete the new 220-bed Mediclinic hospital in George.
In the public sector, the department secured additional projects through participation in both the education and health sector frameworks in the Western Cape.
In KwaZulu-Natal (KZN), projects within the industrial and warehousing sectors were the main drivers of activity, followed by the residential and commercial sectors. Smaller projects in the retail and healthcare sectors also contributed.
A major commercial office development at Umhlanga Ridge has been completed and Oceans South Residential Tower has made steady progress. The KZN team also supported two projects in the Western Cape by providing additional management and resources.
The construction of the Capital Hotel and new life hospital in Gkebela, along with the construction of the South African Radio Astronomical Observatory (SARAO) operations center and ancillary buildings in Clerefontein, supported activities in the Eastern Cape. In the rest of Africa, the division has completed a data center in Ghana.
In civil engineering, activities include the construction of projects in the traditional civil engineering market as well as renewable energy projects. Delays in orders for certain projects and lower levels of mining infrastructure work affected activity levels in the traditional civil engineering market, which declined by 13%.
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