| 29-08-07 | |||||||||||||||||||||||||||
MURRAY & ROBERTS HOLDINGS LIMITED
MEDIA STATEMENT HIGHLIGHTS
MURRAY & ROBERTS POWERS AHEAD Murray & Roberts has consolidated its position as South Africa’s construction industry leader with a powerful performance in its financial year to June 2007. High levels of activity in all its markets has underpinned an operating cash inflow of R2,0 billion and an increased operating margin of 8,0% based on revenues up more than 60% at R 18 billion for the year. Supported by a 100% increase in operating profits and cash holdings of R2,6 billion, the company has declared a total dividend for the year up 93% to 116 cents per share. Commenting on the results, Group Chief Executive Brian Bruce said: “Murray & Roberts has proved itself a great company with committed leadership and people. We have entered our most significant period of market opportunity in more than 40 years and the work we have done over the past seven years preparing the Group for this period has built a formidable new performance platform and skills base to engage the future potential of all our markets. “There is every indication that market demand for the products and services that suit the capability of our Group will remain buoyant for the foreseeable future.” The Murray & Roberts project order book has increased by 125% to R22,5 billion, including R5 billion in Clough. Capital expenditure increased 200% to R1,0 billion in the year, in preparation for the growth prospects ahead. Murray & Roberts announced that its ownership of Australian associate Clough Limited will increase above 60% through a recapitalization and share acquisition program agreed with the company. As a consequence Clough will be consolidated from 1 July 2007 and contribute to another year of significant growth for the Group. In preparation for this process, Clough has realized a write-down in its own accounts for the past year that ensures all its legacy problems are financially covered prior to consolidation. Says Bruce: “This has been a well thought through and necessary step that although seemingly harsh in the present, is in the best future interests of all concerned. The company is now freed from its past problems to focus on future value under its new leadership team and ownership structure.” Murray & Roberts entered the JSE Top 40 Index in May this year and has since become the largest company in the construction sector based on its market capitalisation above R23 billion. The company has noted that growth of between 15% and 25% per annum can be expected in its domestic and international market for the foreseeable future. For the year ahead and after consolidation of Clough, fully diluted headline earnings per share is expected to grow between 30% and 40%. For further information contact: Murray & Roberts Client Service |
