JSE-listed Consolidated Infrastructure Group (CIG) delivered robust results for the year ended August 31, driven by the delivery of substantial complex electrical work in terms of the Department of Energy’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) and the development of new electrical infrastructure in West and East Africa, specifically in Ghana, Kenya and Zambia.

The group’s revenue increased by 31% year-on-year to R2.04-billion, while earnings attributable to shareholders improved by 25% year-on-year to R171-million, from the prior year’s R137-million.

Headline earnings a share were up 19% to 137.8c and earnings before interest, tax, depreciation and amortisation were 24% higher year-on-year at R278-million.

The company’s order book grew by 10% to R2.2-billion.

CIG subsidiary Consolidated Power Projects (Conco), which contributed 85% of CIG’s revenue, increased its revenue by 35% year-on-year to R1.72-billion.

The subsidiary successfully executed R600-million worth of work on seven REIPPPP Round 1 projects, with an additional R270-million of work still to be delivered in the next year.

Further, while negotiations regarding the awarding of work on REIPPPP Round 2 projects were ongoing, CIG had already secured orders of R290-million out of a potential R500-million.

Conco continued to focus its attention both in South African and across the African continent, where it aimed to contribute to sustainably meeting the continent’s growing electrical demands, CIG said.

“The current order book of Conco and higher-than-expected levels of bidding and tenders awaiting adjudication will contribute to the group’s sustainable growth path in South Africa,” CIG CEO Raoul Gamsu commented.

Meanwhile, the group also expanded its protection and automation offerings and extended its services to other market segments across the African continent.

The division was separated into a standalone business with an independent strategy and growth prospects. This independent division was expected to grow over the medium term and, should it be successful, would have a material impact on the protection and automation division in 2015, CIG stated. 

Further inroads were made in the operations and maintenance division to service the highly technical maintenance requirements of wind farm developers and original-equipment manufacturers, while the building materials division had another successful year and expanded in line with a moderate pick up in the sector, CIG said.

Continued progress was also made in the rest of the African continent and significant contract wins were achieved in Tanzania, Kenya, Uganda and Zambia, while Ghana and Angola continued to develop. 

“A growing population, together with increasing urbanisation and purchasing power, will increase our opportunities across Africa. Consequently, our focus to position our divisions to tender and flexibly deliver high-value electrical projects into the African continent is also due to accelerate the groups’ growth prospects on the continent,” Gamsu added.

Meanwhile, CIG’s Saudi business successfully executed its first small project and the business has been selected for an additional R70-million project.

Further, the company’s acquisition of oil and gas waste management group Angolan Environmental Services (AES) was expected to be completed next month.

“Management has been involved with this business since December 2012 and is pleased with its performance, which is in line with our expectations. Had CIG equity accounted the results of AES for the eight months ended August, it would have contributed 18c of additional earnings a share,” CIG stated.

Meanwhile, the group was successful in raising R256-million of equity capital in May and R130-million of medium-term notes in August, with its debt-to-equity ratio remaining constant at 30%.

The capital was raised specifically to fund the high levels of organic growth in the electrical sector and to settle the AES acquisition.