Julius Berger promises to remain preferred partner on infrastructure

Julius Berger Group says it remains the preferred partner for the construction of power plants and other infrastructure facilities, stressing that it has several plans to consolidate its brand in Nigeria and beyond.

George Marks, managing director, Julius Berger Group, said this recently in Lagos, pointing out that the construction giant was implementing a business strategy that rested on the company’s active participation in infrastructure programmes, implementing further proactive diversification of its service portfolio while expanding aggressively beyond Nigeria.

Julius Berger Nigeria plc recently released its financial statement for 2015. The construction giant’s turnover was N133.8 billion, 32 percent fall from 2014 figure, owing to economic retraction. But Julius Berger repaid a loan of N2.9 billion within the year and did not take new loans. It equally paid N1.50k dividend per ordinary share to shareholders, pledging to protect their interests at all times.

According to Marks, Julius Berger expected an economic stimulus from the 2016 budget, adding that economic downturn experienced last year impacted the level of activities in Africa’s biggest economy negatively.

Wolfgang Kollermann, company’s finance director, said Julius Berger’s profitability was sustained because the management proactively and rationally developed efficient measures to alleviate the effects of the economic downturn and mitigate potential adverse consequences, adding that the net result was a tough but pragmatic measures adopted to attain cross operational efficiency.

During the period under review, cost of sales fell by 31 percent, which is proportionate to reduction in turnover, reflecting efficient management of project direct cost. Earnings ratio rose 9.9 times (60.66/6.13) in 2014 to 31.6 (42/1.33) times in 2015.

Kollermann said the company had been able to achieve successes with the active collaboration of shareholders, employees and stakeholders.

“The company has also, against all odds, been able to maintain dividend pay-out to shareholders,” the financial director said.