Basil Read experiences significant revenue drop
Basil Read has announced a R1 billion loss for the 2017 financial year.
Basil Read has announced its results for the year ending December 2017, and they’re not good. According to the construction company, revenue fell from R5.126 billion in 2016 to R4.581 billion in 2017.
The company’s annual report statement said that the group and company's results in the current year were greatly impacted by loss-making legacy contracts and write-off of goodwill in the roads division, as well as the reversal of deferred tax assets in loss-making entities. As a result, the group reported a net loss after tax of R1 billion for the 2017 financial year.
The statement read:
“Significant items in the loss for the year include provisions for onerous contracts of R208.7 millio, impairment of goodwill and reversal of deferred tax assets relating to the roads division of R261.1 million, and the write down of debtors and development land of R84.7 million… The group's balance sheet has been negatively impacted by the loss realised from operations. At year-end, the group's current liabilities (R2.1 billion) exceeded current assets (R1.4 billion) and the group's cash had decreased to R126.4 million.”
Pictured: Basil Read's recently appointed CFO, Pieter van Buuren