Raubex, a major road builder, says in an update for the year ended February 2018 that SA’s construction sector has not grown in the past year.
Critically, its road-surfacing and rehabilitation operations had lower volumes of work from the South African National Roads Agency.
Against this backdrop, the group is now exploring opportunities domestically and internationally in order to supplement its revenue streams.
"Good progress has been made during the second half of the year with regard to international expansion opportunities and replacement of the construction order book," Raubex said on Monday.
The group said its materials division contributed "consistently" to operating profit for the year. Diversified revenue streams from commercial quarrying, contract crushing and materials handling and processing for the mining industry had also differentiated it from peers.
A slowdown in aggregate sales during the first half of the year, particularly in Gauteng, continued into the second-half.
"Contract-crushing and plant-hire operations remained challenging in line with conditions in the overall construction sector," Raubex said.
But the group’s infrastructure division, which specialises in work outside of the road-construction sector, experienced good growth in the affordable housing sector.
Raubex’s good reputation and client base have enabled it to partially offset the delay in the roll-out of projects related to the renewable energy sector.
Meanwhile, the roll-out of water infrastructure was slow during the year, leading to discontinuation of one of the group’s water operations.