The group had been forced to substantially “rightsize” its road construction business in its 2019 financial year due to almost no tenders being issued, and in the six months to August 31, a further 61 staff had to be retrenched.
The main reason for a 1.9 percent decline in group turnover in the six months to August 31 to R4.04bn had been the dearth of road construction work due to the government previously simply not making new tenders available, he said.
This had since changed. Operating profit was up 37 percent to R216.3m.
Following the cost cuts in 2019, “we have managed to stop the bleeding and are better positioned to manage the lower volume of construction work on hand, while we have maintained sufficient capacity to participate in an anticipated improvement in the sector,” Fourie said.