Photo by: Duane Daws
JSE-listed Consolidated Infrastructure Group (CIG) maintained a strong order book and delivered strong double-digit growth during the first half of the current financial year, as its diversification strategy offset the impact of global volatility.
The group on Tuesday posted headline earnings a share of 136.3c for the six months ended February 29, a 24% rise on the earnings of 110.1c apiece achieved in the corresponding period the year before.
Basic earnings a share increased from 110.3c in the first half of the 2015 financial year to 136.4c a share in the six months under review.
Profit for the period also increased year-on-year from R163.6-million to R208.6-million, while earnings before interest, taxes, depreciation and amortisation (Ebitda) rose 33% to R274-million during the first half of the year.
“CIG has not had any cancellations in projects nor experienced any untoward delays in project awards or issue of tenders, despite the exceptional volatility experienced in emerging markets over the past six months,” CIG CEO Raoul Gamsu said on Tuesday.
The diversification in geography, with CIG eyeing the generation of 55% of its profits outside of South Africa, and industries had enabled the group to manage a “volatile environment”, he explained.
CIG generated revenue of R2.1-billion during the period under review, a 26% hike on the R1.7-billion achieved in the corresponding period in 2015.
The group’s turnkey developer of high-voltage electrical infrastructure, Consolidated Power Projects Group (Conco), contributed half of the group’s profits, with a rise in profit after tax from R86.4-million in the first half of 2015 to R104.7-million in the period under review.
Ebitda was up 31% to R218-million.
Conco delivered a 28% increase in revenue to R1.8-billion during the period under review, while its order book increased some 35% to R5-billion.
CIG’s building materials business posted a first-half profit after tax of R13.8-million, edging up from the R12.6-million in the prior corresponding period.
Revenue was down 1% to R228-million, while Ebitda rose 11% to R36.2-million.
Meanwhile, CIG's rail division Tension Overhead Electrification (Tractionel) posted profit after tax of R9.3-million during the period under review, while Ebitda increased 17% to R17-million on a comparative basis in the final four months of the first half of 2015.
Revenue also improved on a comparative basis by 35% to R112-million during the six months to February, compared with R60-million during the four months reviewed in the first half of last year.
The unit’s order book surged 200% to R400-million.
The group's oil and gas waste disposal provider Angola Environmental Servicos Limitida (AES) recorded a 24% increase in profit after tax to R62-million during the six months to February.