Enza Construction has experienced substantial growth over the past five years. The growth has been organic, and the risk of over-trading was mitigated by entering into joint arrangements with experienced construction companies.
Enza predominately focuses on the building sector, and the building division's performance has consistently been strong. A civils division was established in 2013, and realised a R13m loss in that period. This division has since been incorporated into the building division, with civils opportunities being pursued on a selective basis. The focus on core operations has resulted in consistently improving - performance.
During this restructuring the group decentralised its support functions, resulting in a saving of R10 million. The overhead structure was further streamlined in the 2015 financial year, and the forecast for 2016 is expected to remain in line with 2015, even with the expected growth.
The company's cash position improved significantly in 2015, driven mainly by the joint arrangements. It is anticipated that a significant portion of the funds in the joint arrangements will be declared as dividends in the 2017 financial year.
Enza Construction has enjoyed steady staff growth since inception.
The company's order book as at June 2015 amounted to R1,406 million. The order book only comprises contracts in the building sector, and 80% of these contracts are in the public sector. 55% of the order book will trade through joint arrangements.