Construction Group Raubex Group on Wednesday pointed to a secured order book of R4.7 billion to help see the group through continued challenging trading conditions in the short-term.

The group said that despite difficult trading conditions it had been able to grow both revenue and earnings.

However it added that the impact of pressures on margins was likely to become more evident in the 2011 financial year.

Raubex reported headline earnings per share up 11% to 323.8 cents for the year ended February 28, 2010 from 291.7 cents previously.

The group recorded earnings per share of 325.6 cents from 289.2 cents earlier.

Raubex revenue was up 10.1% to R4.58 billion, from R4.16 billion in 2009.

Operating profit was at R887.2 million, from R794.6 million previously.

The group declared a final dividend of 75 cents per share.

"The past year presented challenging trading conditions for the group but we are pleased with the overall performance and resulting growth in revenue and profitability.

"Double-digit growth is nothing to be sneezed at in these challenging time," said Francois Diedrechsen, financial and commercial director of Raubex.

Diedrechsen said that the group's international expansion had progressed well with work currently underway in Namibia, Zambia and Malawi.

"Locally, a number of new contracts were secured in the past year as part of our efforts to secure the medium-term order book. In addition, we expect a number of tenders for large concession contracts to be issued in the year ahead," he said.

He added that the long-term outlook remained positive with a number of concession contracts expected to come out for tender.

These include the N1 N2 Winelands Project, which was out on tender along with the N2 Wild Coast toll road and the second phase of the Gauteng Freeway Improvement Project, which was expected to commence by the end of 2011.

Raubex noted that South African National Roads Agency annual maintenance budgets remain encouraging.

It said the poor condition of the provincial and municipal road networks should see government and local authorities place additional emphasis on this essential infrastructure.

"Mining activities are showing signs of improvement and this bodes well for both B&E International and SPH Kundalila's material handling operations.

In addition, two suspended diamond related contracts have recently been revived whilst a number of other prospects are in the offing in Namibia," it said.

Revenue for its Roadmac division decreased 3.4% to R1.98 billion, from R2.05 billion earlier.

Operating profit declined by 5.9% to R405.4 million.

"This space attracting a lot of opposition," said Diedrechsen.

The divisional margins decreased to 20.5%, from 21.1% in 2009.

Roadmac is a specialist in the manufacturing and laying of asphalt, chip and spray, surface dressing and slurry seals.

The division has secured a healthy order book going into 2011 with demand for asphalt in the Gauteng market remaining strong.

"Unusually high rainfalls caused delays in the execution of some work, particularly in the Gauteng region.

This had a negative impact on the asphalt business with a number of orders now taking place during the new reporting period," Raubex said.

It added that the division was operating at full capacity but the impact of new work being completed at lower margins due to increased competition would become more evident in the 2011 operating margins.

Raubex Construction revenue increased 44.8% to R1.59 billion while operating profit increased 84.4% to R263.2 million.

The division's margins increased to 16.6%, from 13% in 2009.

"The division operated at full capacity during the year as a result of the contracts secured in the run up to the World Cup and the Namibian contracts which were awarded at the beginning of the year," the group said.

Internationally, revenue increased 57.6% to 507 million with margins decreasing to 7% as a result of tough trading conditions experienced in Zambia.

Revenue for Raumix, the materials division remained flat at R1.02 billion and operating profit decreased by 1% to R218.7 million.

"Valuable experience continues to be gained through the group's ongoing African expansion drive and the resulting extended footprint coupled with a healthy financial position sets Raubex well to navigate the challenging year ahead," Raubex concluded.