Local markets are pricing in 300-basis-points of rate cuts over the next two years.
Group 5 pride
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Listed construction company Group Five on Monday announced another
year of "excellent" growth as it released its results for the year
ended 30 June.
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 percent from R2.40
to R3.79 and fully diluted headline earnings per share increased by 71
percent from R2.33 to R3.98.
Group revenue rose by 16 percent from R7689-million to R8900-million, "showing a pleasing acceleration in the rate of trading in the second half".
Operating profit before fair value adjustments increased by 62
percent 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
five percent by recording a margin of 7.1 percent (compared to 5.1
percent 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.