OUR STRATEGY

Globally, construction operates within a cyclical industry. Basil Read’s sustainability depends on our ability to manage through these cycles. During 2016, management critically reviewed the business in order to balance these risks, restore profitability and build a stable platform for sustainable growth.

The implementation of the turnaround strategy followed intense management debates on the construction cycle over the next five years to identify key drivers and develop and implement a vision and mission for the company, based on our core strengths.

Strategy

Strategic focus Objective Mitigates Targets 2017
Growth
  • Organic
  • Procure new business
  • Improve financial performance.
Organic growth
  • Doing more with what we have to improve returns
  • Business development initiatives
  • Vertical integration for improved business value.
  • Ability to secure new work
  • Cost pressures for related services
  • Increasing operating margins
Procure new business
  • Market intelligence
  • Identify opportunities.
  • Reliance on tendered work
  • Order book growth to 2,5 times revenue
Improve financial performance
  • Improve customer cash receipt cycle
  • Settle legitimate claims speedily
  • Structure balance sheet appropriately
  • Align supplier-subcontractor payments to our
    customer receivable cycle
  • Arrest further losses on distressed projects
  • Need for working capital facilities
  • Volatility in earnings
  • Optimise the working capital cycle
  • Reduction in lead times for claims
    resolution
Asset productivity  
  • Deliver at a better rate (outperform competitors and
    excel at winning tenders profitably)
  • Manage scope of work (negotiate scope changes while maintaining positive relationships)
  • Improve operational cost management
  • Improve agility (flexible and responsive to change)
  • Significantly improve productivity (on-site activity improvement).
  • Probability of loss-making contracts
  • Reduction in order book
  • 5% improvement in productivity on site
  • Overhead cost reduction to 4% of revenue
Corporate culture  
  • Review all businesses to determine their fit in the
    Basil Read strategy and develop clear action plans based on this analysis
  • Assess policies and procedures against the requirements of the restructured company
  • Transform corporate culture to align with strategy for a better and more valuable business.
  • Retraining employees when
    redeployed internally
  • Ability to attract and retain talented individuals.
  • Teamwork, empower staff, trust, respect and lead by example
  • Common policies and procedures
    in key areas by end 2017
  • Transformation barriers continuously eliminated.

Understanding that Basil Read’s future must be built on its current priorities and environment, we critically reviewed our strategy to build a stable platform for growth. This followed a comprehensive analysis of our business drivers, internal and external factors affecting performance, lessons learned in recent years and an independent risk audit. The key components of this strategy can be summarised as follows:

OUR VISIONThe Basil Read vision is to be the leading construction company in southern Africa where we are the: PREFERRED CONSTRUCTOR PREFERRED EMPLOYERPREFERRED INVESTMENT

OUR MISSION To deliver safe, profitable projects and services

OUR MOTTOBUILDING LEGACIES

VALUES

Safety

Integrity

Compassion

Delivery

Unity

Commitment

OUR DIVISIONS

Construction

Developments

Mining

Roads

St Helena airport project

OUR STRATEGIC OBJECTIVES

Grow the business

Optimise asset productivity

Modernise our corporate culture

OUR STRATEGIC TARGETS

Revenue

Operating margin

Profit

Order book

Cash flow management

Zero fatalities