Diversified construction, infrastructure concessions and related services company Group Five will exhibit at this year’s Investing in African Mining Indaba. The company aims to use the indaba to increase its mine plant construction footprint in Africa.
Group Five operations director Mark Humphreys tells Mining Weekly that the company aims to position itself as the go-to company for mine construction projects on the continent.
“We are focusing on several projects in resources-rich African countries, which we believe will contribute to a sustainable income stream for the continent’s mining industry. The company wants to clearly present comprehensive, yet economical, solutions to mines in Africa, regardless of how difficult the locations might be to access,” he details.
Group Five is a diversified construction, infrastructure concessions and related services group engaged in the resources, energy, real estate and infrastructure delivery sectors.
The company listed on the JSE in 1974. It has a growing international footprint with operations in over 20 countries in sub-Saharan Africa and Eastern Europe. It has about 14 000 employees.
“Group Five’s African footprint continues to grow in response to the continent’s dire need for more infrastructure development,” says Humphreys.
He explains that the South Africa-headquartered company is focusing more on projects outside South Africa.
“The South African mining sector is not as buoyant as that of the rest of Africa and, as such, is not currently a primary focus of Group Five. South Africans need to work together to make the country a more attractive environment for potential investors . . . At present, it seems that potential investors are considering prospects on the African continent, but not in South Africa,” he elaborates.
Latest Developments
In a statement released in August, Group Five announced that, in the year ending June 2014, the company recorded a 39% increase in revenue, a 22% increase in operating profit, a 52% increase in earnings a share and a 26% increase in fully diluted headline earnings a share.
In the statement, now retired Group Five CEO Mike Upton said that the positive results were the result of bold management decisions during the financial downturn.
“The contribution of the group’s strategic positioning for annuity-type businesses of investments and concessions, manufacturing and operations, and maintenance contracts, as well as the group’s strong reputation in African mining and transport and its leading position in the South African real estate, oil and gas and power sectors, have mitigated the effects of continued fragility in the South African building and civil engineering markets to some extent,” he concludes.