Basil Read  
ANNUAL REPORT 2009
Milestones in time
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Group at a glance
 
       
Construction   Mining   Developments   Engineering   Group

This division incorporates Basil Read’s civil engineering, roads and building operations. Proven technical and financial engineering skills have reinforced the group’s position among the leaders in this industry.

Basil Read undertakes major works for private and public sector clients covering a broad spectrum of civil engineering and road projects, including earthworks, bridges, pipelines, infrastructure, harbour and marine works, industrial plants, sports facilities, roads, highways, airports and other related industrial activities. The group also adds value through innovative packaging: build-operate-transfer (BOT) contracts, design and construct, and other alternative solutions tailored to meet client requirements.

Using a total quality approach to projects, the Basil Read building division adds value through unique turnkey solutions, innovative construction methods, effective cost control, design alternatives and financing options.

 

Basil Read’s mining division incorporates the group’s opencast mining operations and drilling and blasting activities, housed in subsidiary Blasting & Excavating (Pty) Limited.

Basil Read Mining specialises in opencast contract mining; mine spoils rehabilitation; bulk earthmoving; thin, thick and multiple seam mining, hard-rock selective mining and materials handling. B&E provides drilling and blasting services to the southern African construction, quarrying and mining industries. It is the largest company of its kind and the major user of explosives in these industries in the region.

Basil Read Mining has operated medium- and long-term contracts for gold, platinum, nickel, iron, diamond and coal mining clients across Africa, using the latest operating equipment and innovative mining techniques to satisfy their evolving needs.

 

Basil Read’s developments division is strategically significant to the broader group: while the philanthropic nature of many of the contracts undertaken is an integral part of our social licence to operate, the division also provides secondary work for group companies. From affordable housing developments to mixed-use residential estates and light industrial parks, Basil Read is working with national, provincial and local government, parastatals and non-governmental organisations to support national imperatives focused on improving the quality of life of South Africa’s people.

Basil Read’s flagship project in this sector to date is the Cosmo City development – already a vibrant community of over 9 000 families enjoying the comfort of affordable, quality homes surrounded by schools, churches, parks and, soon, shopping centres. By the end of 2010, Cosmo City will be home to some 70 000 residents. Similar projects are well under way in Doornkuil, south of Johannesburg and Cape Town.

 

Basil Read’s engineering division complements the activities of the group’s construction, mining and developments divisions, adding a wealth of specialised in-house expertise and experience. This will be augmented by the considerable pool of consulting expertise in the TWP group, following shareholder approval for this acquisition in November 2009.

Drawing on an 800-strong team of skilled professionals, TWP is a leading engineering project house with a track record of over US$20 billion in successfully completed projects for its global clients. TWP provides a full range of civil and structural engineering, project management and architectural services, as well as electrical and mechanical engineering solutions.

This newest division in the group will capitalise on increased demand for companies that offer turnkey services and specialist skills for construction projects.

 

For well over half a century, Basil Read has been laying the foundations for the future of the country and all South Africans. Every South African has been touched by Basil Read at some point – from the home you live in, the clinic you are treated in, the roads you drive on or the school where your children are educated.

In just about every area of the construction industry in South Africa, Basil Read plays a leading role, be it building, civil engineering, road construction or opencast mining. The group’s focus on value-for-money offerings that deliver uncompromising quality, even in the face of the tightest of deadlines, is the cornerstone of its business.

Basil Read’s founding principles – hard work, team effort and integrity – are evident in every contract we undertake. A combination of innovative technology and unwavering attention to detail enables Basil Read to not only meet clients’ requirements, but exceed them every time.

As South Africa grows and changes, Basil Read is ready to meet these new challenges head-on. From low-cost housing to a stadium for the 2010 FIFA World Cup or vital infrastructure development, you can be sure Basil Read will deliver.

Revenue
R3,9 billion +46%
(2008: R2,7 billion)

 

Revenue
R679,2 million -6%
(2008: R719,7 million)

 

Revenue
R68,3 million -12%
(2008: R77,4 million)

     

Revenue
R4.7 million +34%
(2008: R3,5 million)

Operating profit
R288,6 million +69%
(2008: R170,4 million)

 

Operating profit
R113,9 million -8%
(2008: R124,5 million)

 

Operating profit
R6,2 million -54%
(2008: R13,5 million)

     

Operating profit
R408,8 million +33%
(2008: R308,4 million)

Highlights

  • Exceptional growth experienced in 2009
  • Acquisition of Gerolemou/Mvela bolsters building division
  • Basil Read completes the Mbombela Stadium, ahead of the 2010 deadline
 

Highlights

  • Solid results in tough trading period
  • Poised for future growth as commodity market stabilises
  • Contracts secured during the year valued at R900 million
 

Highlights

  • All approvals received for Savanna City at the Doornkuil site
  • Phase 1 infrastructure completed for Klipriver Business Park
  • Some R3 billion in work will be created for other divisions over the life of current projects
 

Highlights

  • TWP acquisition diversifies Basil Read’s service offering
  • Projects under management in excess of R60 billion
  • Enlarged group equipped to offer a full service to the world’s construction environment and mining sectors
 

Highlights

  • Basil Read wins the Sunday Times Business Times Top 100 Companies Survey – for second consecutive year
  • Acquisitions add critical mass to the group
  • International expansion well under way
 
 
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