Murray & Roberts concludes recovery year and prepares for growth
29 August 2012
Johannesburg, 29 August 2012 - Murray & Roberts today announced its annual results for the year ended 30 June 2012.
Revenue from continuing operations increased by 16% to R35,4 billion (2011: R30,5 billion). An attributable loss of R736 million (2011: R1 735 million) was incurred, of which R208 million was recorded for the second half of the year, after accounting for significant charges and contract completion costs.
The Group ended the year with an order book of R45,3 billion. The average margin in the order book is within the Group's strategic range of 5,0% to 7,5%.
Henry Laas, group chief executive comments: ‘The Recovery year has been an exceptional one for the Group, in the context of the achievement of the objectives that were set more than 12 months ago. Two of the five operating platforms that are mostly dependant on the South African construction sector, continued to experience challenging market conditions. However, the Group's resilience was ensured through the diversity of its operations and markets."
The Group's commitments on the Gorgon Pioneer Material Offloading Facility were discharged, although later and at a greater cost than had been anticipated. The Board is however pleased to announce that the arbitration rulings on the first three disputes on this project, relating primarily to scope changes from the tendered design, have been awarded in the Group's favour.
The achievement of Operating Commencement Date 2 ("OCD2") on the Gautrain Rapid Rail Link was a big achievement for the Group within the year. OCD2 was certified by the Independent Certifier after the remedial work to address water ingress in the Rosebank to Park Stations section of tunnel was completed.
The Group is also pleased to announce that a resolution of major commercial issues on the Medupi Power Station Civils contract with Eskom was reached in the year under review. The arbitration on the Dubai International Airport is following its course and the Group expects resolution towards the end of the 2013 calendar year.
The Steel Business, including Cisco, was disposed of at book value subsequent to the year-end in two separate transactions. The Steel Business transaction, excluding Cisco, is subject to Competition Commission ("Commission") approval.
The Group ended the year with a lost time injury frequency rate of 1,14, the lowest rate yet recorded and two operations achieved 12 months without a lost time injury.
Significant strides were made on risk management. The internal audit function was further strengthened and a regulatory compliance function was established, which together with risk management form the three pillars of integrated assurance.
The Group has not yet reached finality with the Commission regarding the potential applications and penalty relating to historic anti-competitive practices and the Board is of the view that the provision held as at 30 June 2012 is adequate.
"The Group's focus on growth is motivated by the objective to enhance shareholder value through a return to profitability as soon as practically possible. The growth strategy envisages aligning the Group's portfolio of businesses selectively with market segments and geographies that present sustainable growth potential, simultaneously expanding its offshore revenue base," concludes Laas.
*Please note that this media statement contains extracts from the full Preliminary Report for the year ended 30 June 2012 and should be read in conjunction with the full Preliminary Report available on www.murrob.com.
For further information contact:
Mr Ed Jardim
Group Communications Executive
Mobile +27 (0) 83 357 6282
Murray & Roberts Client Service
Tel: +27 (0)11 456 1144
Fax: +27 (0)86 637 0113
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