Group Five keeps eye on offshore contracts
Siseko Njobeni
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Trade and Industry Correspondent
ENGINEERING and construction company Group Five yesterday said it would continue with its strategy to derive a third of its construction work outside SA, despite an upswing in infrastructure spend and a vibrant local building and construction market.
Engineering and construction companies are well placed to benefit from several infrastructure projects that government and government-related institutions have committed themselves to in the next few years.
ôWe have seen an increase in tenders in SA but we will continue to get a third of our construction work from outside SA,ö chief financial officer Paul OÆFlaherty said yesterday. Cross-border work was in the niche areas of oil and gas, power, mining and airports.
Stephen Meintjes of Imara SP Reid yesterday said Group Five had established itself in several foreign markets because of a collapse of infrastructure in SA over a long period. The latest market had been Dubai, where the company had seen the value of its contracts increase to almost R2bn, since it opened offices there in 2004.
Meanwhile, the company yesterday said it expected headline earnings a share for the year ended June 30 to be 25%-40% higher, compared with the corresponding period last year. It attributed the increase to improved performances of its construction, property development and building supplies businesses.
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