Altx-listed civil engineering and construction group Sanyati on Monday said it was in no hurry to seek a JSE main board listing despite an expected steady rise in turnover and a bulging order book.

The firm is on course to a forecast 65% growth in turnover in the 2007 financial year after it said on Monday it had bagged R54,4m in contracts.

Sanyati CEO Rick Jackson said the company would remain in the alternative stock exchange "for some time".

He said JSE-listed construction companies such as Murray & Roberts, Group Five, Basil Read and WBHO Construction had revenues of at least R1bn. He said, because its revenue was less than R1bn, Sanyati was a second-tier construction firm.

Sanyati is the biggest of the AltX-listed construction companies, with revenue of R260m.

Revenue for the next financial year was expected to reach R430m, the company said.

Five months into the current financial year, Sanyati said it had 88% of its expected revenue for 2007 already on its books.

An increasing number of the company's contracts relate to public infrastructure investment.

Jackson said the company's last three construction contracts were from government and government-related companies.

The company has won a R37m contract to construct a pipeline for Umgeni Water, the KwaZulu-Natal bulk water supplier. Sanyati subsidiary Afriscan Construction would execute the Umgeni Water contract, the company said.

Jackson said while government spend on infrastructure had picked up momentum, "it is still not where we would like it to be".

The company's recent contracts also include the construction and provision of civil engineering services for two residential projects. The contracts are worth R15,4m.

About 90% of the company's contracts emanate from KwaZulu-Natal.

Jackson said it was not necessary for the group to seek work in the country's other provinces. He said there was enough work in KwaZulu-Natal for the group to grow.

"When there is so much work on our doorstep, it is not necessary to spread to other provinces," he said.

Jackson said the company was pursuing acquisitions and would make an announcement in two months' time.

The company's share price closed unchanged on Monday at 122c.

Business Day
 
Publisher: I-Net Bridge
Source: I-Net Bridge