Civil engineering group Protech Khuthele recorded a decrease in overall revenue for the financial period ending August 31. The company said a significant factor affecting the slump was the continued severe decline in public- and private-sector spend.

Further, the financial costs associated with expanding into the African region also played a role in decreasing the revenue, said Protech Khuthele CEO Antony Page.

“The company’s ready-mix business has returned to profit- able levels and has recorded a 12% revenue increase. This is a significant achievement, especially in this current dwindling market,” he added.

Page also said the contract-ing business revenue was badly affected by a 13% decrease to R417-million, owing to delays in major capital projects in the mining sector, with operating profit having decreased by 75% to R10.2-million, owing to increased competition attributable to a continued suppressed market.

He added that the company did not expect a dramatic change over the next year in the current trading conditions and believed that the current suppressed market would continue for some time.

“On the contracting division, we are confident that government’s R8-billlion infrastructure spend over the next three years will eventually be rolled out, so we can capitalise on opportunities,” he concluded.

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