http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.58Change: 0.29
R/$ = 10.96Change: 0.10
Au 1197.73 $/ozChange: 8.40
Pt 1225.50 $/ozChange: 22.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Mar 04, 2010

Group Five seeks more work abroad, in private sector

Back
Group Five CEO Mike Upton discusses the company's prospects (04/03/10) Cameraperson: Nicholas Boyd; editing: Darlene Creamer
Engineering|Africa|Design|PROJECT|Project Management|Projects|Water|Africa|South Africa|Energy|Energy Sectors|Mining|Transport|Infrastructure|Mike Upton|Power|Water|Ricoh R10 Digital Camera|Middle East
Engineering|Africa|Design|PROJECT|Project Management|Projects|Water|Africa||Energy|Mining|Transport|Infrastructure|Power|Water||
engineering|africa-company|design|project|project-management|projects|water-company|africa|south-africa|energy|energy-sectors|mining|transport-industry-term|infrastructure|mike-upton|power|water|ricoh-r10-digital-camera|middle-east
More Insight
© Reuse this



Group Five was seeking a return to a “nice mix of public and private work such as before the super-boom”, said CEO Mike Upton on Thursday as he announced the company’s results for the six months ended December 31.

He was also in favour of procuring more work abroad.

Upton said this was driven by the fact that there had been a slowdown in the South African public infrastructure sector, punctuated by a 12-month hiatus in public utility contract awards.

He said several factors conspired to make this hiatus happen, including last year’s election, a new administration taking office, an erosion of the tax base, a global recession, an inherent lack of capacity in government departments to execute projects, as well as the fact that parastatals had to raise their own debt financing in a difficult market.

This all meant that the public sector was “not such as big theme” for Group Five as 12 or 18 months ago, said Upton.

Instead, the group was focusing on growth opportunities in the Middle East, and in Africa’s mining and energy sectors, including South Africa’s burgeoning private power sector.

However, Upton added that the South African government’s water, power and transport sectors were still big spenders.

He noted that the company’s civil engineering order book constituted 61% local business by the end of August 2009, but that it had now shifted to 48% by February this year.

Also, by February, around 62% of Group Five’s full order book was local public sector work, down from 80% in August 2009. Cross-border work was at 25% of order book, which Upton wanted closer to 40%.

The group’s order book was at R10,5-billion in February, down from R11,5-billion in August.

When considering a pipeline of possible projects across all sectors, Upton said the group could secure around R36-billion of work in a multiyear pipeline valued at R116-billion, which would translate into a base-load of work at R10-billion a year.

Group Five recorded a 4% drop in revenue to R5,7-billion for the six months ended December 31 compared with the same period in the previous financial year.

Operating profit was up 6% to R399-million, fully diluted headline earnings a share increased by 8%, with operating margin up from 6,3% to 7%.

Upton believed it was possible for the group to protect its margin through tackling larger multidisciplinary projects requiring design and project management capabilities, further cost savings, a further reduction in loss-making projects, and greater international exposure, as international projects carried higher margins than local projects.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Video News
More
 
 
Latest News
Updated 4 hours ago Industrialisation remains a major part of the South African developmental agenda and an important vehicle towards achieving the Department of Trade and Industry’s (DTI’s) target of creating 100 black industrialists in the next five years, Trade and Industry...
Updated 4 hours ago The construction of a new innovation hub in the heart of the Dube TradePort, in Durban, was set to kick off in March 2016, as Dube TradePort Corporation sealed a R160-million lease agreement with Eureka Capital. Eureka Capital planned to develop a seven-storey 21 500...
Updated 5 hours ago South Africa will become the first African country to host the Organisation for Economic Cooperation and Development’s (OECD’s) Steel Committee Conference when the committee’s seventy-seventh session takes place in Cape Town between December 11 and 12. The...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
JSE-listed real estate investment trust (REIT) Rebosis Property Fund achieved a distribution growth of 8.1% to 99.45c per linked unit in the financial year ended August 31, despite volatile market conditions.
JAMES ROBERTS The MOM incubator was designed to help babies in developing nations who were dying in conflict-struck nations or who do not receive hospital care
A low-cost, inflatable incubator won this year’s international James Dyson design award, which aims to encourage and inspire the next generation of design engineers.
The World Bank released its ‘Doing Business 2015: Going Beyond Efficiency’ report last month and ranked South Africa 43 out of 189 global economies for its ease of doing business, with Singapore topping the rankings.
Air Products South Africa officially launched its R300-million Eastern Cape air- separation unit (ASU), at its new manufacturing facility in the Coega Industrial Development Zone (IDZ), earlier this month. It is the second facility that Air Products launched in South...
BMW South Africa (SA) has signed a power purchasing agreement with energy company Bio2Watt. The offtake partnership will bring renewable energy to the carmaker’s Rosslyn plant, north of Pretoria.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks