The Group has taken the decision to concentrate on its core competency as a rail-focused entity, an industry in which we have operated successfully for more than 55 years. This restructuring saw the incorporation of the overhead rail electrification into the profitable operations of rail construction and maintenance and the discontinuance and disposal of the loss-making elements of the Group’s electrical reticulation business and the manufacturing operations.
The restructuring and disposals have all been completed and the Group’s directors are confident that the remaining operations are well positioned to take advantage of not only the significant opportunities that exist in the rail construction and maintenance sector within South Africa and the rest of Africa, but also the additional cost savings in the restructured Group.
Set out here is the five-year review for the Group that reflects the results of the continuing operations of the Group. The losses and profits in relation to the discontinued operations and the losses associated with the disposal of the discontinued operations have not been reflected in the information below, but can be found in the annual financial statements.
On a like-for-like basis, comparing the performance of the continuing operations, the Group has experienced significant growth driven by profitable operations of the rail business from opportunities in both the local market and in the rest of Africa.
A notable exception to this trend was experienced in the 2009 financial year, which saw a reduction in revenue and profits. This was the result of poor contract performance in two rail contracts. Both contracts have been completed.