Group Five targets state infrastructure programme for growth

Posted On Friday, 17 July 2009 02:00 Published by Commercial Property News
Rate this item
(0 votes)

Group Five is one of the construction firms that have continued to see growth in earnings, benefiting largely from the government’s multibillion-rand spending on infrastructure.

Group FiveGroup Five is one of the big construction firms that have continued to see growth in earnings, benefiting largely from the government’s multibillion-rand spending on infrastructure.

CEO Mike Upton said earlier this year the group would continue to target the government’s infrastructure spending programme for future growth as work in its overseas markets and the private sector had come under pressure.

“Our strategy — a two-dimensional strategy of product and geographic diversification with a balanced portfolio of businesses that provide a higher blended margin to that of a purely South African construction business — made us much more resilient than before,” Upton said.

He said the worsening economic conditions in some of its markets had put some customers under pressure, especially in mining and in private sector building activity, both in SA and the Middle East. With commodity prices plummeting in recent months, the mining sector, which provides a considerable chunk of work to several construction companies, had scaled back on capital expenditure.

About 80% of its R13bn construction order book was already from its South African operations, and further construction contracts worth about R2bn were expected to be announced soon, Upton said.

The firm yesterday said the expected full-year earnings were calculated using the fully diluted number of shares which included the dilution from the shares held by the iLima Consortium at each year end.

Last modified on Monday, 08 July 2013 19:49

Most Popular

Anuva Investments launch Section 12J hospitality fund with property partners Flyt Property Investment

Oct 18, 2019
Zane De Decker HR
Investment into Section 12J venture capital vehicles has seen a huge uptake over the last…

Fairvest to become fourth property company to list on A2X

Oct 30, 2019
DARREN WILDER
Fairvest Property Holdings, a real estate investment trust with a market cap of R2…

Significant shifts in the Winelands commercial sector

Oct 18, 2019
Caption Somerset West commercial
A decade of corporate semigration and decentralisation fuelled the Winelands commercial…

Property market ready for take-off as bond grants rise

Oct 18, 2019
BetterBonds Mortgage Monitor
Housing demand has continued to gain momentum since the start of the year and in the…

Equites Property Fund Interim Results

Oct 18, 2019
Andrea Taverna Turisan CEO Equites Property Fund
Equites Property Fund Limited (Equites) today announced distributable earnings for the…

Please publish modules in offcanvas position.