Solid, in spite of appearances
ANTHONY CLARK: The travails of CIL
The sectors Consolidated Infrastructure Group operates in have viable long-term growth scenarios
Consolidated Infrastructure Group (CIL) — a one-time and consistent high-flying darling of the JSE mid-cap sector — has more than halved in the past 18 months, having been sharply de-rated to a single-digit earnings multiple. You’d swear the company is on the skids. But prospects remain solid. Underlying revenue and growth in earnings before interest and taxes have been consistent with the recognition of most observers that the sectors CIL operates in — oil and gas, power infrastructure and management — have viable long-term growth scenarios. CIL listed in 2007 as a building material business called Buildworks. In mid-2008 an audacious R600m bid for privately owned power infrastructure business Conco catapulted CIL into a new business sector and dramatically changed its outlook, as well as its revenue mix. This was followed by the acquisition of a 30.5% stake in AES, an Angola environmental oil and waste management business in 2012 for $15.25m. Both acquisitions have been highly pro...
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