SHORT-TERM CAUTION IN LONG-TERM GROWTH TRAJECTORY

“Society inexorably seeks increased access to improved quality products and services, but at lower prices. This is the consumer products model, particularly the automotive industry.

So too with our capital project clients, most of whom seek from us safer, higher quality, more efficient and faster delivery of bigger and more complex projects, often with inadequate specification and design certainty, and generally procured through a process of lowest tender.

Our industry contracting model is outdated for this circumstance, particularly in the public sector, where restrictions on decision capacity make it inevitable that without change, we will increasingly be faced with the risk or reality of negative funding on our projects.”

Commentary

Murray & Roberts has over recent years, taken full advantage of positive conditions in the global construction economy. Strategic investments in new business acquisition, capital expansion and major project procurement have created a comprehensive performance platform for access to and engagement of developing market trends.

In the five years between 2004 and 2009, revenue has grown by about 300% and operating profit by almost 600%. However, the global economic crisis has taken its toll on the Group, last year on its order book and this year on working capital as well as the financial performance of some operations.

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