The Group is pleased to report a strong set of results for the second six months in line with the reported results of the first six months of the year. The increase in earnings is a result of the Group’s diversified business model allowing it to benefit from the increased tender activity in the construction sector.
In the roads and earthworks division, execution on all projects is progressing well. The Group is also
encouraged by increased demand in the volumes driven bitumen supply operations. Tender activity in the
market remains buoyant and further contract awards are anticipated that will support the current strong order book going forward.
The materials division has experienced stable operating conditions during the financial year and its diversified operations including materials handling services to the mining sector and commercial aggregate supply, have continued to support the Group’s earnings. During the year the Group increased its stake in Bauba Resources Limited (“Bauba”) to a 51% shareholding. Bauba is a junior mining and exploration company with various mineral reserves under licence. The Group is pleased with the progress to date and should start benefitting from this strategic partnership in the FY2023 financial year.
The infrastructure division has experienced favourable conditions in the building sector and was well
supported by the strong performance of the Western Australia operations. In the South African renewables
sector, the delay in the start-up of the Risk-mitigation IPP round of renewable energy projects impacted this
The division is however well positioned to benefit from the roll out of round 5 and 6 of the Renewable Energy Independent Power Producer Procurement Programme (“REIPPPP”) anticipated laterin the year.
The Group’s flagship project relating to the Expansion, Upgrading and Improvement of the Beitbridge Border
Post Project in Zimbabwe that was awarded at the end of 2020, is progressing well and is on schedule to meet all remaining milestones.
The Group is encouraged by Government’s commitment to the South African Economic Recovery Plan and the substantial budget allocations for public infrastructure spend over the next few years. The Group has
maintained a strong balance sheet and a healthy cash balance throughout the period and combined with its
diversified operations, it is well positioned to participate in the increased construction activity in the South