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Strategy

In addition to the normal centralised functions of strategy, budgetary methodologies, finance, treasury, tax, company secretarial, internal audit and other support services, the holding company executives retain management and governance oversight in respect of subsidiary companies.

Executive management’s continuing pre-occupation is to extract a superior and controlled operating performance from all business segments. The focus centres on introducing standardised procedures and policies, improving productivity processes and reporting mechanisms, particularly information systems for which sizable capital allocations have been committed.

The strategic intent going forward is to capitalise on the expanded Group to allow for increased focus on acquisitive growth, quality organic growth, and to leverage sales to existing clients for all Group companies. The need to enhance front-end revenue creation by lifting the brand profile and establishing quality information systems is well under way. The optimisation of business unit collaboration and integration, assisted by performance monitoring methodologies, is also a key focus for the executive.

An Aspirational Strategic Framework sets out the Group’s growth aspirations to February 2016, and against which all decisions are measured on an ongoing basis.

In response to a changing market and shareholder and organisational demands, a decision was taken to transform the Group from five smallish individual businesses within a portfolio type Group, to a stronger, flexible, market orientated business which offers sustainable value to all stakeholders. This can only be achieved through a performance platform that delivers a quality, long-term sustainable order book; operational excellence that releases the embedded value in that order book; a sustainability plan focused on human resource development; an optimum health, safety and environment programme; and a robust performance management system.

Significant progress has been made in transforming the Group, including:

• The relocation of the Group head office to Gauteng.
• The merger of Civcon, Erbacon Construction and Erbacon Roads and Earthworks into a single Civils Construction business, trading as Civcon.
• The acquisition of BO’s Small Plant Hire CC and its integration with Bo's hire and Sales.
• The acquisition of significant human capacity with appropriate experience and a track record of successful delivery within the construction industry, including engineers, contract managers, quantity surveyors and human resource, commercial and financial managers; the rebuilding of the leadership teams of the three remaining entities, with growth and succession planning in mind.
• The design of a more formalised risk management process which will be systematically rolled out in 2011
• The implementation of an order book management system to identify and secure targeted projects within our chosen markets, including geographic diversification.