Strategy and 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 supply chain. The group achieves growth through:
The group’s growth drivers are a diversification of what we do, where we do it and when we do it.
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Focus on
mining,
industrial,
power, oil and
gas, water, real
estate and
transport |
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Grow capacity
to secure
and deliver
large
multidisciplinary
contracts |
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Extract value
throughout the
infrastructure
value chain |
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Develop, invest
in and operate
concessions and
property assets |
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Expansionary
geographic
strategy |
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Driving
internal
efficiencies |
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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.
Growth in 2011 and 2012 was 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 transport, bulk water systems and housing. Notably, the recent recovery in the resource sector and interest in African commodities, together with associated energy and transport infrastructure developments, supports economic growth within the infrastructure sector.
Group Five’s management team therefore expects opportunities to emerge in its current and targeted markets and is optimistic that during F2013 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 grow.
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