Murray & Roberts Annual Report 2002

2002

Group Summary (R millions)
Revenue	9027	8535
EBIT	386	218
Attributable earnings	505	252
Total assets	6373	5596
Operating cash flow	793	558
Value created	2609	2174
Payroll costs	1811	1617
Total number of employees	15379	16337
Ordinary Share Perfomance (cents)
Attributable earnings per share	152	74
Headline earnings per share	154	76
Earnings per share excluding currency gain on offshore treasury funds, amortisation of goodwill andexceptional items	130	72
Operating cash flow per share	239	164
Dividend per share	35	-
Net asset value per share - 30 June	798	597
Market price per share - 30 June	925	630
Financial Statistics
Operating margin (EBIT on revenue) (%)	4,3	2,6
Attributable earnings on average shareholders funds (%)	21,8	13,6
Interest cover (times)	37,1	10,3
Ratios
Debt / equity	0,19	0,28
Current	1,40	1,31

Revenue

EBIT

R millions

2002

2001

2002

2001

	9027	8 535	386	218
Building and Civil Engineering	3 076	2 990	117	84
Building	1 980	2 077	76	42
Civil Engineering	1 096	913	41	42
Industry and Mining	1 736	1 328	101	77
Industry	1 289	915	73	59
Mining	447	413	28	18
Engineered Products	1 676	1 628	78	42
Automotive	1 033	1 048	27	9
Transport	643	580	51	33
Supplies and Services	2 479	2,545	181	124
Construction Services	924	917	81	64
Steel Conversion	1 555	1 628	100	60
Corporate	60	44	(91)	(109)

	2002	2001	2000	1999	1998	1997	1996	1995	1994	1993
Summarised Income Statements
Revenue	9 027	8 535	13 318	12 972	12 586	12 082	10 746	9 283	7 765	6 779
Earnings before exceptional items
and interest	386	218	294	203	545	227	575	741	594	530
Exceptional items	(2)	(3)	(697)	(76)	348	(118)	128	(8)	1	2
Earnings/(loss) before interest
and taxation	384	215	(403)	127	893	109	703	733	595	532
Net interest received/(paid)	71	(6)	(64)	(109)	(262)	(308)	(182)	(120)	(107)	(78)
Earnings/(loss) before taxation	455	209	(467)	18	631	(199)	521	613	488	454
Taxation	(36)	(27)	(39)	(32)	(65)	(42)	(128)	(151)	(111)	(91)
Earnings/(loss) after taxation	419	182	(506)	(14)	566	(241)	393	462	377	363
Income from associate	90	71	–	–	–	–	–	–	–	–
Minority shareholders’ interest	(4)	(1)	(65)	(52)	(48)	(31)	(18)	(54)	(37)	(30)
Earnings/(loss) attributable
to ordinary shareholders	505	252	(571)	(66)	518	(272)	375	408	340	333

	2002	2001	2000	1999	1998	1997	1996	1995	1994	1993
SUMMARISED BALANCE SHEETS
Non-current assets	2 007	1 761	1 861	2 155	2 334	2 870	2 934	2 534	2 251	2 127
Current assets	4 351	3 819	3 796	4 631	5 758	4 135	4 253	3 499	2 915	2 473
Goodwill	15	16	–	151	269	502	708	704	700	718
Total assets	6 373	5 596	5 657	6 937	8 361	7 507	7 895	6 737	5 866	5 318
Ordinary shareholders’ equity	2 648	1 982	1 717	2 410	3 003	2 693	3 326	3 019	2 503	2 265
Minority interest	9	8	8	329	362	215	213	243	242	207
Permanent capital	2 657	1 990	1 725	2 739	3 365	2 908	3 539	3 262	2 745	2 472
Non-current liabilities	610	700	819	896	1 146	1 359	1 476	1 101	1 116	1 082
Current liabilities	3 106	2 906	3 113	3 302	3 850	3 240	2 880	2 374	2 005	1 764
Total equity and liabilities	6 373	5 596	5 657	6 937	8 361	7 507	7 895	6 737	5 866	5 318

On 30 June 2000, the group’s holding in Unitrans Limited reduced to 43,8% (30 June 2002: 44,9%) and Unitrans Limited became an equity accounted associate company.

	2002	2001	2000	1999	1998	1997	1996	1995	1994	1993
EARNINGS
Earnings/(loss) per ordinary
share (cents)	152	74	(165)	(19)	150	(79)	109	126	108	106
Headline earnings/(loss) per
ordinary share (cents)	154	76	36	3	49	(44)	72	126	108	105
Dividends per ordinary
share (cents)	35,0	–	–	50,0	48,5	48,5	48,5	47,0	42,0	40,0
Dividend cover	4,3	–	–	–	3,1	–	2,2	2,7	2,6	2,7
Interest cover	37,1	10,3	4,6	1,9	2,1	0,7	3,2	6,2	5,5	6,8
PROFITABILITY
EBIT on revenue (%)	4,3	2,6	2,2	1,6	4,3	1,9	5,4	8,0	7,6	7,8
EBIT on average total assets (%)	6,5	3,9	4,7	3,0	8,2	3,1	8,4	12,6	11,3	11,3
Attributable earnings on average
ordinary shareholders’ funds (%)	21,8	13,6	(27.7)	(2.4)	18.2	(9)	11,8	14,8	14,2	15,1
PRODUCTIVITY
Per R1 000 of revenue:
Payroll cost (rand)	201	189	177	188	196	223	223	234	240	251
Total average assets (rand)	663	659	473	530	529	601	639	631	675	695
Value created (Rm)	2 609	2 174	2 156	2 807	3 737	3 030	3 353	3 120	2 670	2 438
Value ratio	1,44	1,34	0,91	1,15	1,52	1,12	1,40	1,43	1,44	1,43
FINANCE
As a percentage of permanent capital:
Interest bearing debt	19	28	33	27	(23)	38	26	14	19	26
Total liabilities	140	181	228	153	85	143	111	92	98	104
Current assets to current liabilities	1,40	1,31	1,22	1,40	1,50	1,28	1,48	1,47	1,45	1,40
Operating cash flow (Rm)	793	558	370	493	1 275	(99)	210	418	633	420
Operating cash flow per
ordinary share (cents)	239	164	107	142	369	(29)	61	129	201	134
OTHER
Weighted average ordinary
shares in issue (millions)	331,9	340,1	346,0	346,0	346,0	346,0	344,4	323,1	314,0	314,0
Number of employees – 30 June	15 379	16 337	26 098	32 361	43 268	48 464	49 489	49 087	49 754	47 608
The comparative figures for the years 1993 and 1994 relating to shares in issue and statistics per share have been adjusted to take account of the five for one sub division effective 15 May 1995.

DEFINITIONS
EBIT	Earnings before exceptional items, interest and taxation	Total liabilities	Borrowings, redeemable preference shares and non-interest bearing debt
EBT	Earnings before taxation	Permanent capital	Ordinary shareholders’ equity and minority interest
EAT	Earnings after taxation attributable to ordinary shareholders	Net asset value (NAV)	Ordinary shareholders’ equity
Interest cover	EBIT divided by interest	Average	Arithmetic average between consecutive year ends
Value ratio	Value created as a multiple of payroll cost
Interest bearing debt	Borrowings and redeemable preference shares