The group’s interim results for six months ended 31 August 2014 also saw revenue growth of 15.7 per cent to 3.73 billion rand from 3.22 billion rand in the first half.
[DATA RBX:Raubex Group Limited] also reported a surge in its operating profit by 9.6 per cent to 300 million rand from 274 million rand in the first half.
Rudolf Fourie, CEO of Raubex Group, said the company had done well under difficult circumstances.
“We have delivered good results in a tough environment. The recent earnings enhancing acquisitions have been successfully bedded down and we are looking forward to their positive contributions in the second half of the year,” said Fourie.
Fourie said internationally, the higher margin work secured in Zambia during the period will fill capacity in our construction division and allow us to be more selective and secure better margins in the work that we tender for in South Africa.
“The Group’s order book is at an all-time high and our balance sheet remains very healthy,” added Fourie.
“Looking ahead, we expect a continued improvement in our performance whilst we remain on the lookout for acquisitions that fit our integrated model.”
The group says it expects conditions to remain challenging going ahead especially in the construction sector.
“Conditions in the South African road construction industry are anticipated to be stable but challenging in the period ahead with competitive pressure expected to continue,” read the statement.
“Improvement in the sector remains dependent on the roll out and execution of the government infrastructure development plan which will absorb excess capacity in the industry.”
The group added that progress made by SANRAL in expanding its strategic network of roads previously under a healthy volume of
maintenance work in future.
“In the infrastructure division, progress continues to be made to secure work related to Eskom’s REIPPPP and also in the fields of mine housing infrastructure and civil works.”
Raubex said the acquisition of Empa Structures will strengthen the skills required for concrete works and structures and will further enhance the vertical integration of the Group.