Murray & Roberts advances from Recovery to Growth
28 August 2013
MURRAY & ROBERTS ADVANCES FROM RECOVERY TO GROWTH
Johannesburg, 29 August 2013 - Murray & Roberts today announced its annual results for the year ended 30 June 2013.
The Group generated revenue of R34,6 billion (2012: R31,7 billion) and reported attributable earnings of R1,0 billion (2012: R0,7 billion attributable loss). This result includes an attributable profit of R223 million on the disposal of Clough's investment in Forge Group Limited. Diluted profit per share was 245 cents (2012: 214 cents diluted loss per share) and diluted headline earnings per share were 186 cents (2012: 246 cents diluted headline loss per share).
The Group's net cash position was R4,3 billion (2012: R1, 2 billion). The net cash proceeds from disposals equaled R2,2 billion. All term debt was repaid in the year under review. The Group ended the year with an order book of R46,0 billion (2012: R45,3 billion).
Henry Laas, group chief executive comments: "The Board is pleased with the significant improvement in the Group's financial results and expects the Group's positive earnings trend to continue in the medium-to long term, driven mainly by its international operations."
PROPOSED ACQUISITION OF CLOUGH
On 30 July 2013 Murray & Roberts announced its intention to acquire all of the outstanding ordinary shares in Clough Limited ("Clough"), in which it is a 61.6% shareholder.
"The proposed Clough acquisition is compelling and consistent with the Group's long-term growth plans. To support our long-term growth the Group has focused on its core competencies of engineering & construction and identified the energy (oil & gas and power) and mining & minerals market sectors as presenting the best medium-to long term growth opportunity," continues Laas.
A separate Category 1 transaction announcement regarding the proposed acquisition was released on the Stock Exchange News Service ("SENS") today and will be published in the press on Thursday, 29 August 2013.
HEALTH AND SAFETY
During the year under review, Murray & Roberts achieved a record low Lost Time Injury Frequency Rate of 0.82 (2012: 1.14) which is better than the target of 1.0. The Group regrettably suffered two fatalities when employees sustained fatal injuries while on duty. "We are saddened by the occurrence of these incidents, despite significant reduction in injury rates. The Board extends its heartfelt condolences to families, friends and colleagues of the deceased," says Laas.
The Competition Commission Fast-Track Settlement Process has been concluded and the Group was fined R309 million relating to historic anti-competitive practices.
"Murray & Roberts is a well recognised name and has played a significant role in developing the country's infrastructure for more than 110 years. While current management were not implicated, we have taken decisive action to ensure that anti-competitive practices will not be repeated," continues Laas.
On 29 January 2013 the Group announced the disposal of Union Carriage & Wagon Company to a black-owned consortium. On 28 June 2013 the successful conclusion of the disposal of the balance of its Construction Products Africa operating platform (excluding Hall Longmore) was announced. The transaction is subject to Competition Commission approval. Negotiations with potential buyers for the sale of the remaining Hall Longmore business are ongoing.
"We would like to thank our stakeholders for their ongoing support, in a year in which distressing legacy issues have taken their toll on the Group's reputation. We look forward to restoring trust and earning the support of all our stakeholders, as we continue to bring the lessons of the past to bear on ensuring a brighter future for the Group," concludes Laas.
*Please note that this media statement contains extracts from the full Preliminary Report for the year ended 30 June 2013 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
This media statement includes certain various "forward-looking statements" within the meaning of Section 27A of the US Securities Act 10 1933 and Section 21 E of the Securities Exchange Act of 1934 that reflect the current views or expectations of the Board with respect to future events and financial and operational performance. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, including, without limitation, those concerning: the Group's strategy; the economic outlook for the industry; use of the proceeds of the rights offer; and the Group's liquidity and capital resources and expenditure. These forward-looking statements speak only as of the date of this media statement and are not based on historical facts, but rather reflect the Group's current expectations concerning future results and events and generally may be identified by the use of forward-looking words or phrases such as "believe", "expect", "anticipate", "intend", "should", "planned", "may", "potential" or similar words and phrases. The Group undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of this media statement or to reflect the occurrence of any unexpected events.
Neither the content of the Group's website, Clough's website nor any website accessible by hyperlinks on the Group's website is incorporated in, or forms part of, this media statement.
About Murray & Roberts
Murray & Roberts is a leading South African engineering, contracting and construction services company. It has created employment, developed skills, applied technology and delivered infrastructure since 1902.
The company offers civil, mechanical, electrical, mining and process engineering; general building, construction and infrastructure development services in the global underground mining market and selected emerging markets in the natural resources and infrastructure sectors.
The company operates in Southern Africa, Middle East, Southeast Asia, Australasia and North and South America. The company is based in Johannesburg South Africa, where it has a public listing on the JSE Limited.
Murray & Roberts is a group of world-class companies and brands aligned to the same purpose and vision, and guided by the same set of values.
More information is available at http://www.murrob.com/