Prospects

The Group’s total secured Construction order book stands at R10,3 billion (30 June 2011: R8,8 billion). The Construction one-year order book stands at R6,4 billion (30 June 2011: R5,9 billion).

The value of the Group’s target opportunity pipeline stands at R144 billion, up from R134 billion in August 2011, with activity in all its markets.

The Investments and Concessions cluster is delivering annuity business growth, with group-wide opportunities in active infrastructure sectors in increasingly more geographies.

Manufacturing has been re-focused and its performance is improving on higher sales volumes to a broadening number of markets.

The disposal of the loss-making Construction Materials business will relieve the cash drain from this segment on the Group and improve returns once completed.

Based on the Group’s positioning in the key infrastructure growth sectors of power, mining, oil and gas, water and transport and in the concessions market for specific projects, as well as the progress made in terms of improving the group’s internal efficiencies, management expect a slow recovery in group activity levels from the second half of F2012. This should support some improvement in the Group’s trading performance from F2013. The timing of this recovery is dependent on the timing of awards on visible projects.

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