ENGINEERING: Racec Up And Running
Recent Western Cape Business News
RACEC, the Cape Town-based and AltX listed rail and electrification infrastructure solution company announced the award of several multi million Rand contracts, as well as releasing a trading update for the six months ended 31 March 2010.
The Group stated that it will report a loss per share of between 1.3 cents and 2.6 cents per share (2009: earnings of 6.5 cents per share). This represents a solid improvement from the headline loss per share of 18.9 cents for the second half of the 2009 financial year.
“There is strong evidence that the infrastructure market is recovering, with a number of projects which had been postponed during the economic crisis, now being revisited,” explained Charles Harrod, Chief Executive Officer, RACEC Limited. “In particular, RACEC Electrification has recently secured several new contracts for delivery in the next two years, which are set to contribute positively to the financial performance in the current year.”
RACEC is well positioned to entrench the financial recovery into the second half of the financial year with current confirmed projects in the pipeline representing 85% of the year’s anticipated total revenue, compared to 41% at the same time last year. In line with the improved prospects, the Group is anticipated to return to profitability by 30 September 2010.
Recent contract awards:
Cape Town Container Terminal Expansion Project
RACEC Electrification secured a 22-month contract valued at R70 million as part of Transnet’s upgrade of five substations and the construction of two new substations. The project scope includes reconfiguring the container stack areas and installing new electrical supplies to approximately 2 700 refrigerated containers (Reefers). The electrical works will include the installation of some 25 and 70 kilometres of MV (medium voltage) and LV (low voltage) cabling respectively, 38 miniature substations and 460 Reefer power kiosks among others.
Streetlighting on the N1 motorway between Koeberg Interchange and Old Oak Interchange
RACEC Electrification was appointed to supply and install streetlighting in a 13-month contract valued at more than R70 million. The distance to be lit spans approximately 12.75 kilometers of multi lane divided highway and 10.5 kilometers of on- and off-ramps located at the interchanges. The new lighting will be controlled by an intelligent wireless mesh-network (BEKA’s OWLET nightshift Telemanagement System). This will eliminate the need for a wired control circuit and will allow remote management and control of the installation from a centralised management server. The contract includes the supply and installation approximately 70 kilometres of MV (medium voltage) and LV (low voltage) cabling, 600 poles and 900 luminaires among others.
In addition, RACEC Rail is also currently undertaking a large rail rehabilitation/reconstruction contract in North West Africa.
RACEC also announced a fully underwritten rights offer to raise approximately R10 million at a subscription of 40 cents per share which will be used to deliver on the two large contracts described above.
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