Revenue 587 080   260 955  
  Operating profit before non-trading items 62 131   28 322  



The Projects division focuses on the procurement of large-scale contracts for the group. The nature of these projects is usually such that they incorporate both the design and construction elements and hence the group assumes all the risks relating thereto. In a service concession arrangement there is a further operational element to the project where for a fixed duration the group would manage the ongoing operations of the project after the completion of the construction.

Government private-public partnerships (PPPs) and other infrastructure development initiatives are currently the main source of these projects.

Amounts included in this year’s results are derived from the EPC package of the King Shaka International Airport (KSIA) which was responsible for the management of the building and civil packages as well as the specialised mechanical systems.

As part of a consortium, the group was recently announced as the preferred bidder on the Department of Rural Development and Land Reform building and we still await adjudication of the Prison PPP submitted last year.

The group, in consortium, is currently finalising the submission for the N1/N2 toll road in the Western Cape and submissions for the Wild Coast toll road are due later in 2011.


The opening of KSIA on the KwaZulu-Natal north coast contributed towards a pleasing increase in the number of property sales at Simbithi Eco Estate. The completion of the Country Club during the year means all of the required development expenditure on the project has been provided. Simbithi Country Club achieved a 5 Star Golf Experience award from Compleat Golfer in 2010.

At St Francis Links, 70 properties out of a total of 558 remain unsold. Sales for the last two years have been severely hampered by market conditions. St Francis Links has been included in the top ten golf courses in the country by Golf Digest in 2010.

Both developments are in sound financial health and require no funding from the group for their day-to-day running.


Capital Africa Steel (CAS) has operations within the steel and materials sectors of the construction industry.

Over the last few years CAS has been engaged in the construction of a greenfields pipe mill in Matola, Mozambique designed to service the United States, African and Southern African markets. The mill was commissioned this year and began production.

Trading conditions have been exceptionally difficult following the volatility of the steel price and a significant drop in activity levels. The pipe mill together with 3Q Concrete, a readymix business, contributed towards the losses incurred by CAS this year while the steel and quarry businesses were profitable.

The demand for pipe has improved and the pipe mill should reach profitability in the current financial period, however we anticipate another challenging year ahead for CAS as a whole.