·	Full Year Dividend	up	33% to 60 cents per share
·	Revenues	up	16% to R11,9 billion
·	Operating profit	up	47% to R800 million
		@	6,7% margin
·	Headline earnings (excluding BBBEE Transaction Costs)	up	26% to 184 cents per share
·	Order book	up	18% to R10 billion

Construction and engineering group Murray & Roberts declared a 33% increase in its final dividend to 40 cents per share today, making its total dividend for the full year 60 cents per share. This underpins the increased activity in its regional and sectoral markets, which meant Murray & Roberts announced annual financial results ahead of forecasts, but within its own recent guidance to the market.

Operating profits for the year to 30 June 2006 increased by 47% to R800 million off a 16% increase in revenues to R11,9 billion. Adjusted headline earnings increased by 26% to 184 cents per share.

Commenting on the results, group chief executive Brian Bruce said “The operating margin of 6,7% is the highest recorded by Murray & Roberts since its previous peak performance as an industrial holdings group in the early 1990s”. This reflects increased levels of efficiency throughout the group as all its targeted markets offered increased opportunity. This includes the South African construction market which continued to improve through the second half-year. A surge in demand in the final quarter boosted all sectors of the Group’s construction materials activities.

Performance in the year supported the Group’s strategy to focus on the delivery of sustainable value from increased market activity, including the impact of increased domestic activity associated with the 2010 Soccer World Cup. Future performance would also be boosted through the integration of recent acquisitions in terms of the Group’s strategic value proposition.

The Group’s contracting order book grew by 18% to R10 billion at 30 June 2006. This includes R1,5 billion acquired in Concor and excludes the approximately R4,5 billion share that Murray & Roberts has in the Gautrain project. In addition, the Group has approximately R11 billion of project orders in its foundry and rolling stock manufacturing business that stretch beyond 2010.

Acquisitions and Disposal

The Group acquired 80% of leading brick supplier Oconbrick Manufacturing effective 1 August 2005. Criterion Equipment was sold effective 1 October 2005 to Jay & Jayendra Group in an empowerment transaction supported through a vendor financing structure.

Murray & Roberts increased its shareholding in Clough in Australia to 46,1% in November 2005 plus loan conversion rights to a further 3,0%. The Group has indicated it will raise its shareholding above 50% once Clough is delivering acceptable financial performance, which is now expected by mid-2007.

Ongoing growth in the oil & gas sector boosted activity in Clough, but problems with two contracts in India took Clough into a loss for the year. The company recently reported a forward order book of almost R5,0 billion.

The Competition Tribunal approved the acquisition of 100% of Concor in June 2006 and the company was delisted from the JSE Limited on 3 July 2006. Concor closed the year with revenues of R1,8 billion, with a net profit before tax of R46 million.

Prospects

The Directors remain of the view that the next few years will be positive to the Group and that including the consolidation of its acquisitions, revenues could be at substantially higher levels by 2010 at the targeted margin of between 5,0% and 7,5%. Headline earnings in the year to 30 June 2007 are expected to show good growth.