Our opinion on the current state of WBO

WBHO (WBO) is now South Africa's largest construction company - after the relative demise of Aveng and Murray & Roberts. It has a market capitalisation of over R5bn. It diversified early into Africa to the North, Australia, and the UK. In its results for the year to 30th June 2023 the company reported revenue up 38% and headline earnings per share (HEPS) up 31%. The company said, "The Continuing Operations delivered strong growth this year following a compelling performance from the African operations and good growth from the United Kingdom over the second six months of the financial year. The overall operating margin remains healthy at 4.5%. At the same time, the Group continued to grow its order book levels". Technically the share was in a downtrend following the impact of COVID-19 and its difficulties in Australia, which it is now leaving. The share has broken up through its long-term downward trendline and looks like it has entered a new upward trend.