The giant construction company, Group Five, aims to be Africa’s leading infrastructure and project development, construction and concession group.
Group Five has set its sights on becoming Southern Africa’s leading lightweight dry building materials manufacturer and the leading African specialist toll motorway development, investment and operating company. CEO, Eric Verner, says that this strategy has boosted profits in the latest financials. “We are focused on optimising our use of capital and generating returns on capital employed that are value-enhancing to shareholders.
These results bear testimony to our strategy of investing and operating across the infrastructure value chain, which enables the generation of an improved blended group operating margin and the delivery of annuity income to deliver sustained returns. During the year, our Investments & Concessions business especially proved its value in our portfolio, with its performance again balancing the cyclicality of construction earnings and providing a strong underpin to our overall group results. As a management team, we are continually reviewing our strategy to ensure it remains relevant to changing market landscapes and client requirements, as well as enhancing shareholder value. Our portfolio of assets is therefore tested for its strategic fit and ability to create acceptable return on investment.”
Vemer adds that the group’s overall order book currently stands at R17,3 billion. However, building and housing revenue in the country remained flat at R4,9 billion. The segment reported a 18,5% decrease in core operating profit from R91,4 million last year to R74,5 million. This resulted in the overall core operating margin decreasing from 1,9% to 1,5%. The total secured order book stands at R5,6 billion.