My
reports to stakeholders in 2000 and 2001 highlighted a number of challenges
we set ourselves as a leadership team to meet the strategic promise
of Rebuilding Murray & Roberts. We report back on our performance:
A Line in the Sand – 2000
•
Face up to the problems impacting
on our credibility
Our share price performance continues to reflect the improved
confidence of investors in our group, our leadership team and
our Rebuilding Murray & Roberts strategy.
•
Implement a disposal strategy
for non-core operations
The disposals of Johnson Crane and Alloy Wheels International
in the United Kingdom were completed in the year. We continue
to seek a strategic solution for our investment in Unitrans
Limited as well as Johnson Access, Johnson Arabia and Criterion
Equipment.
•
Fix the problem operations
Genrec has been unbundled and the operating units with promising
business potential absorbed elsewhere in the group. Murray &
Roberts Civils, Murray & Roberts Foundries Group, Booker
Tate and Improvair Environmental Solutions performed below expectation
in the year. Appropriate action has been taken to ensure future
performance.
•
Define the brand identity
of Murray & Roberts
The value proposition embodied within the Murray & Roberts
brand has been developed further during the year, supporting
the unitary nature of our business strategy.
•
Integrate the corporate structure
for unity
Interaction and risk management have been improved throughout
the group. The corporate office plays a greater leadership role,
unifying strategy, human capital development, marketing and
communications, and systems integration.
•
Attract young people into
the business
The age profile of our leadership team has been significantly
reduced with the promotion and appointment of new executives.
We have attracted new young executives throughout the organisation
and have committed to an enhanced bursary programme.
•
Build around our core competencies
for growth
We have clearly defined the core value proposition for Murray
& Roberts and have found increasing interest from our customers
to engage greater levels of involvement based on the benefits
of more integrated design and build solutions.
•
Improve the operating margins
We achieved a further improvement in the year on our journey
to exceed a benchmark operating margin of 5%. In so doing, we
achieved our short-term target return on average shareholders
funds.
•
Deliver growth in headline
earnings
We have once again exceeded our performance targets
in the year under review and delivered Murray & Roberts’
best ever nominal headline earnings result.
