Murray & Roberts Develops a Formidable Performance Platform
27 February 2008
MURRAY & ROBERTS HOLDINGS LIMITED
|144% to R55 billion|
|57% to R27,9 billion|
|Attributable Earnings||144% to R1,7 billion|
|Headline Earnings||69% to 550 cents per share|
|Operating cash inflow|
|61% to R3,1 billion|
|Full year dividend|
|69% to 196 cents per share|
|8,6% Operating margin||Up from 8,2%|
|40,3% Return on Average Equity||Up from 20,9%|
MURRAY & ROBERTS DEVELOPS A FORMIDABLE PERFORMANCE PLATFORM
Murray & Roberts released its financial results for the year to 30 June 2008 and consolidated its position as South Africa's construction industry leader with a powerful performance that saw its order book grow 144% in the year to R55 billion. This includes major projects valued at about R20 billion for Eskom's power generation program and further major project awards in Middle East.
Revenue increased by 57% to R 28 billion and operating profits increased 63% to R2,4 billion at a margin of 8,6%.
Cash holdings at year end amounted to R4,3 billion.
Commenting on the results, Group Chief Executive Brian Bruce said "Murray & Roberts has proved itself to be a great South African company with committed leadership and people. For the first time in more than a quarter century, the driver of opportunity in our market, Gross Fixed Capital Formation (GFCF) has taken centre stage in defining the future economy of many developing nations, including South Africa."
"For South Africa to succeed and provide quality of life for all its people, it is essential for significant new fixed investment to be made in critical infrastructure for Transport & Logistics; Power & Energy; Water & Sanitation; Telecommunications; Health & Education; and Accommodation & Facilities", he said, adding that the Group had invested more than R1,7 billion in the year on its own capital expansion programs.
International operations in Murray & Roberts account for about 40% of activity and all operations in North America, Middle East and Australasia delivered superior performance.
Australian oil & gas contractor Clough Limited was consolidated into the Group accounts from 1 July 2007 and a new leadership team was established soon thereafter. The Group holds 56% of the shares in Clough but with outstanding convertible notes that will take the shareholding to about 60% before December 2009. Clough revenues in the Group were R4,9 billion which delivered an operating profit of R321 million at a margin of 6,6%.
Says Bruce: "We are pleased with the turnaround in the fortunes of Clough from the series of losses incurred over the past three years. Clough's new leadership team has delivered a solid profit performance and order book as a platform for future value creation."
Group headline earnings per share of 550 cents improved 69% over the previous year. The company has stated that subject to a continuation in current levels of fixed investment activity in its markets, diluted headline earnings per share for the year ahead should increase in a range between 30% and 40%.
"Murray & Roberts has embraced the growth challenge offered by increased investment into its domestic and international markets and despite the associated risks, maintains its non negotiable commitment to sustainable earnings growth and value creation" Bruce concluded.
For further information contact:
Murray & Roberts Client Service
Tel: +27 (0)11 456 1144
Fax: +27 (0)86 637 0113