http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.12Change: 0.06
R/$ = 10.51Change: 0.02
Au 1308.30 $/ozChange: 9.42
Pt 1479.50 $/ozChange: 6.00
 
 
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 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|Energy|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|PROJECT|Project Management|Projects|Water|Africa||Energy|Mining|Transport|Infrastructure|Power|Water||
engineering|africa-company|energy-company|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
 
 
 
 
 
 
 
 
Other Infrastructure News
ADAM HABIB University of Witwatersrand vice-chancellor and principal Adam Habib
The first of a series of 15 public debates exploring options for the implementation of the National Development Plan (NDP) was officially inaugurated at the University of the Witwatersrand (Wits) School of Governance this week. In association with the Oliver and...
Mike Rossouw
Eskom’s appointment of former mining executive Mike Rossouw on a one-year, extendable assignment appears to be closely associated with Public Enterprises Minister Lynne Brown’s appeal for “extraordinary” steps to be taken to deal with the “unsatisfactory”...
Global revenues from solar energy operations could double from $59.84-billion in 2013 to $137-billion in 2020, new analysis from Frost & Sullivan shows. The consultancy’s ‘Global Solar Power Market’ report says the total global installed solar photovoltaic (PV)...
More
 
 
Latest News
Responding in writing to a recent Parliamentary question by the Democratic Alliance, Transport Minister Dipuo Peters has provided an update for each of the country’s 13 bus-rapid transport (BRT) systems, noting that each network is at a different stage of...
The South African Real Estate Investment Trust (SA Reit) Association has called on the Competition Commission to intervene in undesirable exclusivity clauses in retail leases that were allowing retailers to stifle market share. The association’s members, which...
ADAM HABIB University of Witwatersrand vice-chancellor and principal Adam Habib
The first of a series of 15 public debates exploring options for the implementation of the National Development Plan (NDP) was officially inaugurated at the University of the Witwatersrand (Wits) School of Governance this week. In association with the Oliver and...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
 
 
 
 
 
This Week's Magazine
Multinational semiconductor chipmaker corporation Intel announced its national campaign to further acquire partners to drive its She Will Connect programme, an initiative that aims to expand digital literacy skills to young women in developing countries, further into...
South Africa's MeerKAT radio telescope array programme should get back on schedule within a few months. This assurance has been given by SKA South Africa (SKA SA) associate director: science and technology Prof Justin Jonas. Early last month, Science and Technology...
The Passenger Rail Agency of South Africa’s (PRASA’s) Metrorail service will remain a subsidised service following its current multibillion-rand rolling stock, station, depot and signalling upgrade programme. PRASA group CEO Lucky Montana has allayed fears that...
GARYN RAPSON Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will open the door for court battles to determine who will be held liable for the remediation
The uncertainties around the remediation of affected areas as addressed in the Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will possibly spark litigation and disputes between landowners and businesses, contractors...
South Africa is currently the largest component of the African Development Bank’s (AfDB’s) active portfolio in Southern Africa, comprising 62.5% of the bank’s $7.9-billion exposure to the 12-country region – the second largest beneficiary is Mauritius, which...
 
 
 
 
 
 
 
 
 
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