Group Five is repositioning into an enabler for infrastructure development as part of its action to tackle "underperforming operations in a rapidly changing industry landscape". The group said on Tuesday its investment and concession cluster, which includes European and African toll road concessions, is central to this new focus. The European business has supplied much of the group’s earnings in recent years, as major South African construction markets have languished, mainly from poor government infrastructure spend. The European assets also provide significant annuity income. Group Five intends to retain a "small and dedicated team" for higher-margin turnkey project management, mainly in the rest of Africa. "The board and management have carefully looked at all our operations to ensure a sustained operation going forward. "Against ongoing market and economic changes, we see an increasing role for being an enabler for the development of infrastructure projects," Group Five CEO Them...
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