Basil Read Drops on Road-Construction Losses: Johannesburg MoverJaco Visser
Basil Read Holdings Ltd., a South African construction company, dropped the most in more than six months after it said unprofitable road-building projects will weigh on full-year earnings.
The stock fell as much as 9.3 percent, the most on an intraday basis since Aug. 24, and was 7.2 percent lower at 11 rand by 12:51 p.m. in Johannesburg. About 164,000 shares were traded, or 1.7 times the daily three-month average.
Earnings excluding one-time items will probably be “185 percent to 195 percent” lower, the Johannesburg-based company said in a statement today. Basil Read provided for losses of 210 million rand ($23 million) on two road construction projects.
The company will pay a special dividend of 1.75 rand a share following the 900 million rand sale of its TWP Holdings (Pty) Ltd. division to a unit of Australia’s WorleyParsons Ltd. The net receipt of the sale was 877 million rand, Basil Read said in the statement.