Basil Read had an exceptional year, despite 2009 being a challenging year that will be remembered for some time in the world`s economic history books. Revenue for the year ended 31 December 2009 increased to R4.6 billion (2008: R3.4 billion). Operating profit for the year rose to R408 million (2008: R308 million) Dividend Despite the ongoing economic uncertainty and with regard to the group's growth targets, notice was given that the directors declared a final dividend of 42 cents per share (2008: 58 cents) in respect of the year ended 31 December 2009. Prospects Basil Read continues to actively pursue growth, both organic and acquisitive, to build a company of critical mass for shareholders. Despite these uncertain economic times the trend of development, particularly in sub-Saharan Africa, is expected to resume in the near future, even if the growth trajectory is flatter. Government has reaffirmed its commitment to infrastructure investment and aims to spend R846 billion over the next three years. Of this, Eskom`s planned construction of power plants comprises one-third. The other two-thirds will be spent mainly on transport infrastructure and water supply capacity. Despite government commitment to infrastructural spend, a definite delay in the roll out of projects has been noted. Budgetary constraints in certain municipal areas create opportunities for the group to partner with municipalities in developing innovative solutions to finance future projects, particularly for our developments division. The public-private partnership model continues to evolve and remains a feasible method of undertaking larger contracts. Given our long-standing and robust partnerships with international construction conglomerates and turnkey contractors, such as Bouygues, Sodexo and Alstom, we are well placed to bid on projects of this nature. Various PPP projects are in the pipeline, including government office blocks, mixed classification correctional centres and toll roads. Basil Read has pre-qualified for a number of these and submitted bids, in joint venture, where applicable. Government recently announced their intention to broaden the use of PPPs in the health sector. The flagship PPP hospital project is Chris Hani/Baragwanath and the new George Mkhari and Polokwane academic health complexes are to be fast-tracked. Basil Read has particular expertise in this area and aims to submit bids in due course. The combined construction value for the group`s targeted PPPs is over R15 billion. We expect significant water-supply projects to be offered for tender in the near future. Some R30 billion worth of work is anticipated, specifically to supply water to power plants under construction. The government has also committed to upgrading water treatment and waste-water treatment plants to create much-needed capacity. Internationally, the group is building a presence in the rest of Africa, in partnership with selected local contractors. Expansionary opportunities are also being explored elsewhere, particularly in the Middle East and Australia, where Basil Read has held discussions with local partners with established reputations in their respective construction industries. Opportunities for acquisition will continue to be cautiously explored. TWPs core mining and process business has seen a significant improvement in sentiment off the lows of last year. There has been an increase in the number of new enquiries and projects awarded at feasibility stage. An improvement in capital markets will be key to these projects moving to the execution phase. TWP is successfully broadening its product offering into the infrastructure field, process plant operation and EPC/Turnkey work. The business climate in Australia, where TWP has a presence, has improved and new contracts have been secured. TWP has also recently established an office in Peru to target a growing number of new mining and process opportunities. An excellent working relationship between Basil Read and TWP has been established and strong synergy has already developed. On a go forward basis the combined group will be offering exciting new products to clients and maximising business efficiency. On the back of a healthy balance sheet and effective management structure, Basil Read will adopt a prudent approach to managing the prevailing volatility to ensure the group continues to grow in a controlled and structured way. Corporate governance The directors and senior management of the group endorse the Code of Corporate Practices and Conduct as set out in the King II report on Corporate Governance. Having regard for the size of the group, the board is of the opinion that the group substantially complies with the Code as well as with the Listings Requirements of the JSE Limited. The group performs regular reviews of its corporate governance policies and practices and strives for continuous improvement in this regard. The group is currently assessing the impact of King III and the new Companies Act. At the group`s annual general meeting, held on 7 May 2009, Mr Bulelani Ngcuka resigned as chairman and non-executive director with immediate effect. Mr Lester Peteni was appointed as the new independent non-executive chairman of Basil Read, effective from 7 May 2009. Mr Peteni, who holds a BSc (Building Science) degree obtained from the University of Cape Town has substantial experience in the construction and property development industries. The group is pleased to welcome Mr Donny Gouveia to the board in his capacity as Financial Director. The board is pleased to further welcome Ms Given Refilwe Sibiya as an independent non-executive director, who was appointed on 1 July 2009. She is a qualified chartered accountant and in addition to her board responsibilities, will serve on the audit/risk committee. Following the acquisition of the TWP group, Nigel Townshend, chief executive officer of TWP, was appointed as an executive director. His appointment was effective from 1 January 2010 and the board welcomes his experience and expertise.