Another construction icon topples

Another construction icon topples

The firm’s construction division has for some time been experiencing difficulties.

The iconic South African construction firm Basil Read Holdings announced in June that it had applied to the Johannesburg Stock Exchange for the voluntary suspension of the listing of its shares after a key unit started business rescue proceedings. This report Nqobile Dludla of Reuters continues:

The cash-strapped company announced that Basil Read Limited, its wholly owned subsidiary which houses its construction unit, had started business rescue proceedings after it failed to secure bridge funding from lenders.

Its shares at the time plunged more than 90% from a high of 22 cents to close at 1 cent.

Basil Read appointed Siviwe Dongwana of Adamentem Chartered Accountants and John Lightfoot of Matuson and Associates as business rescue practitioners.

Basil Read was awarded the design construct and operate contract for the St Helena Airport in November 2011. The project was funded with UK aid at an estimated cost of £250M GBP

“There is uncertainty in terms of the impact of the voluntary business rescue proceedings instituted at Basil Read Limited, on the Basil Read Holdings Limited Group as listed on the JSE,” it said in a statement.

It added the suspension would be until such time as the effect on the listed group could be quantified.

The firm’s construction division has for some time been experiencing cash flow difficulties stemming from, among other reasons, mismatched cash inflows and outflows, it said on Friday.

To mitigate this, it sought to raise bridge funding from a consortium of lenders in order to complete construction contracts, but was advised on June 14 that a majority of lenders was not prepared to make the funding available to it outside of a business rescue process.

Throughout 2017, Basil Read struggled to obtain money to pay creditors, provide working capital and reduce debt. In the year to the end of March, it reported a net loss of 743 million rand ($55 million), while its order book plunged from 12.3 billion rand to 4.5 billion rand.

The firm is trying to implement a turnaround strategy that involves cutting costs and exiting loss-making contacts and assets.

 

Master Builders National Safety Competition 2017 – all the winners

Master Builders National Safety Competition 2017

– all the winners

Damien Pennefather accepts the Master Builders Association Shield for Contracts over R500 million on behalf of the Kusile Buildings Project, Stefanutti Stocks/ Basil Read JV from the President of MBSA, Bafikile Bonke Simelane and Ndivhuwo Manyonga, MD of FEM

Master Builders Congress 2017 Gala Dinner, hosted by the Federated Employers Mutual Assurance Company, saw the climax of the National Safety Competition as the winners of each category were announced.

Master Builders South Africa has for many decades been proudly at the forefront of promoting occupational health and safety in South Africa’s construction industry. Working in close collaboration with the Federated Employers Mutual Assurance Company (FEM) – a household name in the construction industry delivering world class services to its policy holders – Master Builders SA is proud to maintain a close relationship with the licensed workmen’s compensation assurer.

The well-being of member companies’ workforces, together with safe working conditions on construction sites, is a fundamental objective of Master Builders SA. It strives to achieve this by coordinating various interventions at its national office which is executed by the Master Builders Associations who play a vital role in delivering advice and services to employers on building sites throughout the country.

Winners of the coveted Master Builders Association Shield

for Contracts over R500 million:

Winners of the coveted Master Builders Association Shield for Contracts over R500 million: Stefanutti Stocks & Basil Read for Kusile Power Station

Stefanutti Stocks & Basil Read for Kusile Power Station”

Let there be no doubt that this is indeed an enormous task, conducted by recognised professionals in the field of Construction Health and Safety. Readers will be pleased to learn that this year’s Competition was overseen and coordinated by Pierre Fourie, the recently retired Master Builders SA operations director.

MBSA National Safety Committee Chairperson for the period under review was Greg Steele

National Safety Committee Chairperson for the period under review was Greg Steele, Executive Director of Master Builders Association – East Cape. In keeping with the customary high standard of the national competition and in the interest of transparency, Master Builders SA appointed ASHREQ Environmental and Occupational Hygiene Consultants (Pty) Ltd as the independent auditors. ASHREQ Judges for the competition were: Tïandre du Preez, Health & Safety Manager and Dirk Human, Health & Safety Practitioner.

Ndivhuwo Manyonga, Managing Director, Federated Employers Mutual Assurance Company

In her address to Award winners and guests at the Congress 2017 FEM Gala Dinner, Ndivhuwo Manyonga, Managing Director, Federated Employers Mutual Assurance Company said “Health and safety is an investment – not a cost – and needs to be integral to the culture of an organisation. At FEM we will continue to lead the way by doing innovative things to enable organisations to achieve zero harm on their constructions sites, and thereby across the construction industry spectrum.”

Winners of Master Builders South Africa National Safety Competition 2017

SHIELD

CATEGORY

COMPANY

Contract

1.

Vice President’s Shield

A

Plant & Storage Yards

Tiber Construction (Pty) Ltd

Village Deep Yard, Johannesburg

2

Master Builders Association Shield

ALLIED TRADES

B1

Manufacturers and Allied Trades

Brand Engineering SA. (Pty) Ltd

Storage Yard, Cape Town

3

Master Builders Association Shield

MANUFACTURERS

B2

Manufacturers and Allied Trades

Steeledale (Pty) Ltd

Steeledale – Cape Town

Manufacturing Plant

4

Chief Executive Officer’s Shield

C

Contracts less than

R10 million

Patcon Building and Civil Engineering (Pty) Ltd

Vopak Terminal Durban – Early Works Projects

5

Safety Management Shield

D

Contracts

R10 million to R25 million

GVK Siyazama Building Construction (Gauteng) (Pty) Ltd

Aloe Ridge Hotel

6

Ramsay Herd Shield

E

Contracts

R25 million to R75 million

GVK Siyazama Building Construction (Cape)(Pty) Ltd

Alexandra Precinct

7

Vice President’s Shield

F

Contracts

R75 million to R150 million

Concor Western Cape

16 Nettleton Road

8

President’s Shield

G

Contracts
R150 million to R300 million

Liviero Building (Pty) Ltd

JAVETT : UP Arts Centre

9

Federated Employers’ Mutual Shield


H

Contracts
R300 million to R500 million

Group Five (Pty) Ltd

Werksmans Head Office

10

Master Builders Association Shield


I

Contracts
R500 million PLUS

Stefanutti Stocks/Basil Read JV

Kusile Buildings Project, Mpumalanga

Master Builders South Africa is very proud to be associated with FEM who again funded the cost of judging the National Competition.