Message from the CE

Dear Readers

In my previous Robust message, I talked of global equity markets being at an all time high. How times have changed! The current crisis of confidence is probably a welcome correction to what had seemed to be an unstoppable bull run. Murray & Roberts has not escaped the fallout, but we remain ahead of our year-end closing price of 6400 cents at a market capitalisation above R20 billion.

We were entered onto the JSE Top 40 index in May 2007, increasing the prestige and exposure of our share. Subsequently, we surpassed PPC to become the largest company by market capitalisation in our sector. This is testimony to the considerable effort by all our people in Murray & Roberts to engage this current market for best performance and value.

We have closed out the 2007 financial year a very different organisation to what we were just a year ago. The acquisition of Concor has substantially enhanced our domestic capacity and critical mass, while our Australian associate Clough will be consolidated into the Group from this year. In preparation, Clough has taken a significant financial write-down against its legacy projects and will enter the Group under new leadership and with good forward prospects, backed by a financial rescue package arranged by Murray & Roberts.

Notwithstanding the current turmoil in financial and equity markets, we are confident that our market has growth and development resilience for many years into the future. Our core ongoing business is twice the size it was just two years ago and we expect to double our size again within the next three years. This offers significant challenge and opportunity for all our executives and employees in the years ahead.

Thank you all for your considerable efforts in making Murray & Roberts the great company it is. But remember, the construction industry is unforgiving and offers us no opportunity to rest on our laurels.

Brian Bruce