The sky’s the limit in in­fra­struc­ture mar­ket

Financial Mail - Investors Monthly - - Analysis -

Com­pa­nies with un­lim­ited po­ten­tial are rar­i­ties. But Con­sol­i­dated In­fra­struc­ture Group (CIG) is one, and has at­tracted some of the most as­tute small-cap fund man­agers.

CIG has grown head­line EPS (HEPS) at a crack­ing 28,7%/year av­er­age over the past five years. It topped this in its year to Au­gust 2014, lift­ing HEPS 36%.

CIG was on few radars when it listed in 2007 as a quar­ry­ing firm on the JSE’s ALT-X board. CE Raoul Gamsu then ac­quired Con­sol­i­dated Power Projects (Conco) in 2008.

Fo­cused on high-volt­age elec­tri­cal in­fra­struc­ture projects, Conco has been the mak­ing of CIG, paving the way for its main board list­ing and drive into high-growth Sub-Sa­ha­ran Africa (SSA) mar­kets. Over the past five fi­nan­cial years Conco’s rev­enue has gone from R1bn to R2,2bn with its profit grow­ing in tan­dem.

Gamsu is the first to point out

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