Consolidated Infrastructure Group (CIG) posted
double-digit growth in the year to August, with revenue shooting up 26%
to R4.5bn and headline earnings per share jumping 16%.
The recent R850m buyout of electricity and smart meter provider Conlog will further diversify revenue in future.
"Inclusion in the CIG portfolio of [Conlog] is expected to boost
group profitability over 30% in the year ahead," CEO Raoul Gamsu said on
Wednesday.
Profit after tax was up 18% at R392m despite an increase in group
operating costs. The power, electricity and rail businesses all grew
their order books. Hard currency revenue generated outside SA now
accounted for 68% of CIG profit, compared with 54% a year ago.
"Although total [African] infrastructure spend is under pressure, CIG
have been successful in identifying areas in which they can develop a
competitive advantage," Meyrick Barker, an investment analyst at Kagiso
Asset Management, said.
He said CIG had focused on developing specialist technical skills in
high-voltage infrastructure, which resulted in it being viewed as a
preferred supplier across the continent.
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