Listed construction company Group Five on Monday announced another year of ”excellent” growth as it released its results for the year ending on June 30.
While power problems at Eskom and interest rates had a negative effect on both private-sector building and housing segment markets, the company had ”successfully hedged our exposure to this through our
ability to transfer skills to the public-sector infrastructure market and redirected housing market strategy”.
Fully diluted earnings per share increased by 58% from R2,40 to R3,79 and fully diluted headline earnings per share increased by 71% from R2,33 to R3,98.
Group revenue rose by 16% from R7,6-million to R8,9-million, ”showing a pleasing acceleration in the rate of trading in the second half”.
Operating profit before fair value adjustments increased by 62% from R392-million to R636-million.
The most significant highlight of the year’s result was that the group exceeded its short term group operating profit margin goal of 5% by recording a margin of 7,1% (compared to 5,1% in 2007).
”Going forward we will continue to focus on improving group margins, having set targets of seven to nine percent over the next two to three years,” Group Five said. – Sapa