Consani built a global reputation serving a niche market from South Africa. However, in recent times the ongoing strength of the SA Rand together with customer resistance to increased prices for tank containers and aggressive competition, have impacted strongly on the business.

Murray & Roberts Group Executive Director, Keith Smith said: “As stated in our 2004 Annual Report and in the trading update in October last year, Consani has been under performance pressure for some time. The company has been unable to prove a robust business model for sustainable profitability.”

Smith said that a thorough risk review had indicated that the SA Rand exchange rate to the US Dollar had the greatest impact on Consani’s performance potential. “Based on the current expectation that the SA Rand will not materially devalue against the US Dollar for some time, Murray & Roberts has decided not to continue its financial support of Consani.”

Customer resistance to increased prices for tank containers and the aggressive entry of Chinese manufacturers into the market have exacerbated the situation, making any prospect of recovery unlikely.

At 31 December 2004, Consani had fixed assets with a book value of R11,5 million; debtors, stock and work in progress valued at R160 million and liabilities amounting to R216 million, of which R162 million is in loans from Murray & Roberts.

Approximately 450 employees of Consani received their January remuneration this week. However, their future is now uncertain and every effort will be made to support them as they re-order their lives in the difficult months ahead.

ISSUED BY MURRAY & ROBERTS

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