Group Five records 23% rise in operating profit, boosted by corrective action
Despite continuing tough local market conditions, construction firm Group Five reported a 23% increase in operating profit for the six months ended December 2012, to R270-million, from R219-million the previous year.
“The corrective action we took last year set the base for an improved performance, with all businesses’ underlying performance, outside of buildings, in line with guidance provided in November,” Group Five CEO Mike Upton noted.
Revenue for the six months was up 16% to R5.1-billion from R4.4-billion in the first half of the previous financial year, while the company’s order book also improved by 19% to R13.5-billion from R11.3-billion in the first six months of the year.
“The overall group reported order book at December 2012 stands at R18.1-billion, with the Contracting [Construction and Construction + Engineering] order book at R13.5-billion. This represents 190% of revenue in the 2012 financial year, which indicates an increasing line of sight to future trading,” Upton stated.
Group Five’s cash position improved by R372-million to R2.6-billion, while its headline earnings a share increased by 63.4% to 152c and its earnings a share was up 57.3% to 140c.
The company also indicated that it experienced increased demand in the rest of the African markets in which it operated, particularly in mining, power and transport infrastructure.
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