Strategy & Outlook
Strategy
The group’s strategy is to secure growth and reduce earnings volatility within the construction sector by capturing multiple margin streams across the infrastructure value chain. This is achieved through product and geographic diversity and optimising the materials supply chain. The group achieves growth through:
- Expanding its geographic footprint
- Securing and executing large multi-disciplinary contracts
- Developing, investing in and operating concessions and property assets
- Optimising the contribution of our manufacturing and construction materials portfolio
- Focusing on growth sectors such as power, transport, mining and industrial, oil and gas, real estate and water and environment
Outlook
When the global financial crisis took full shape in late 2008, Group Five was diversified in its territorial footprint, having operating experience in over 23 countries within its traditional markets of Africa, the Middle East and Eastern Europe. The global meltdown led to a refocusing in these markets for F2011 and beyond, as well as further broadening of the group’s territorial base - specifically in regions where operational experience with existing customers and technology partners in civil and building construction, power, energy and mining-related sectors are in place.
In 2011, growth could well be slow. However, the group’s current order book and its pipeline of opportunities support a generally positive outlook. The group's South African profile remains focused on the public sector investment projected over the next two decades in the southern African region with respect to electricity development, transport, bulk water systems and housing. Notably, the recent recovery in African commodities, together with associated energy and transport infrastructure developments, supports economic growth within the infrastructure sector.
In the Middle East, the group has moved into new territories outside of Dubai. These markets provide technically attractive opportunities aligned to the group’s capabilities in infrastructure contracts related to industrial works, power, transport and water.
Group Five’s management therefore expects sufficient opportunities to emerge in its current and targeted markets to be optimistic that during F2011 the outlook for the following few years will become better defined, and that the markets we serve, as well as those we plan to serve, will continue to recover.
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