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Group Five building profits

Aug 13 2007 09:54

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Johannesburg - South African construction and engineering firm Group Five posted a 46.6% increase in full-year headline earnings per share and predicted more growth in the year ahead.

The company said in a statement that headline EPS before expenses linked to a deal to bring in black investors increased to 283 cents in the year to end June from 193c the previous year.

Group Five, which has benefited from a building boom as South Africa prepares to host the 2010 Soccer World Cup, boosted its construction one-year order book to R4.8bn, of which 63% is local.

The company expects to achieve further strong earnings growth in 2008, since the South African construction market remained strong, giving it scope to improve profitability by opting for higher-margin contracts.

Group Five declared a final dividend of 42c per share compared with 36c in 2006.

Headline EPS is the main profit gauge in South Africa and strips out certain one-off, capital and non-trading items.

- Reuters

 
 
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