Murray & Roberts Proves Its Resilience
26 August 2009
Murray & Roberts proved its resilience by posting a 27% increase in revenue (R33,8 billion) and profit for the financial year to 30 June 2009. The company maintained it operating margin at 8,6% in a year where construction markets were severely challenged by the global economic crisis.
Commenting on the results, Group chief executive Brian Bruce said, "Murray & Roberts has weathered a severe storm that saw about 40% (R25 billion) of its order book terminated in the four months between November 2008 and March 2009." However, the company has drawn on its resilience and diverse nature as well as the scale and long-term nature of its major project portfolio, to return to stability. "The order book has since settled at a level of R40 billion, which means that over the past four months, we have been winning as much work as we are doing on an ongoing basis" he said.
Murray & Roberts remains confident that any slowdown in construction activity is temporary and that infrastructure markets remain on course for a long-term growth trajectory. This view is supported by the company's Project Opportunity Pipeline, which includes only the projects of interest to the company and which currently stands at R71 billion.
Commenting further, Bruce said "In a year that delivered very different half-year performances, each operating company was stress-tested at year-end in the context of the global economic crisis. The year ahead will almost certainly present further challenges to the Group and its operations. In its favour, the company has a good balance of work between its South African and international markets." he added.
Murray & Roberts announced a number of senior executive appointments, which are linked to its preparation for a South African nuclear strategy, resolution of South Africa's human settlement challenge and increasing opportunities for the development of economic infrastructure in the Rest of Africa.
Bruce stated "We are looking at further acquisition opportunities and our international operations have plans to expand their markets in Middle East, South America and Asia."
"We call this Reframing Murray & Roberts, which defines our strategic response to the economic and market challenges where we are taking our proven business model and placing it within this different context, background and surrounding". he concluded.
For further information contact:
Mr Ed Jardim
Group Communications Manager
Mobile +27 (0) 83 357 6282
Murray & Roberts Client Service
Tel: +27 (0)11 456 1144
Fax: +27 (0)86 637 0113