Johannesburg - Civil engineering and construction group Sanyati Holdings on Tuesday reported diluted headline earnings per share, excluding impairment, up 36% to 21.08c/share for the year to end-February 2009.
Revenue was up 54% to R1.54bn, mainly as a result of the Engineering Central division being consolidated for a full twelve months.
When excluded, the remaining Sanyati divisions contributed strong organic growth of approximately 30% for the period under review.
Earnings before interest, tax, depreciation and amortisation (Ebitda) increased by 13% to R104.3m.
The reasons for the strong ebitda-results are twofold - the consolidation of the Engineering Central division for 12 months, and the performance from the Civil Inland division and more particularly, the Concrete Sliding division.
In certain geographical areas the results were impacted by high rainfall, which led to slight delays on certain projects.
Cash flows from continuing operating activities amounted to R105.3m.
The group described the results as solid in the face of exceptionally tough trading conditions.
"The global economic recession has had an adverse effect on all sectors of business in South Africa. Concerns regarding the cancellation of key contracts have resulted in a loss of confidence in the construction industry," the company said.
"We are fortunate in that the Government has committed a large amount of this year's budget to be spent on infrastructure, which should keep our industry relatively buoyant even if it is driven largely by public sector funding," said Rick Jackson, Sanyati's executive chairperson.
He added that with the expected cuts in the interest rate over the next twelve months, some private sector work will be stimulated.
Marc Krouse, financial director, said Sanyati continues to boast a strong balance sheet and it is very comfortable with the group's capital position as at 28 February 2009.
Cash operating profit from continuing operations increased to R144m from a negative R41.3m in 2008.
"Looking towards the future, we have secured work of R2.4bn with approximately another R1.3bn pending award at present. Included in the amount of confirmed work is R2.1bn that will be executed during the 2010 financial year," said Jackson.
"The greater South African economy has benefitted tremendously from the spurt of infrastructure growth brought about by the 2010 Fifa World Cup. Government's well timed commitment to ongoing and substantial infrastructural spend should mean that these benefits will continue to be felt well beyond 2010."
Jackson said Sanyati is well placed to benefit from the roads and general infrastructural improvement spend that is expected to continue over the next three to four years.
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