Murray & Roberts (M&R),
which has weathered SA’s construction slump thanks to its exposure to other
markets and services, says full-year earnings surged by up to 78% thanks to
smaller losses from business units it is exiting.
The engineering and construction
group has been in the crosshairs of German firm Aton, whose bid for control of
the company has dragged on for four years. The Competition Commission has
opposed a takeover, and the Competition Tribunal will only hear arguments in
early 2020.
M&R said on Friday that
diluted headline earnings per share (HEPS) in the year to end-June rose between
61% and 78%.
The improvement was
“predominantly due to a smaller loss recorded in discontinued operations”.
M&R has repositioned itself
as an international provider of specialised engineering and construction
services, focusing on the metals and minerals, oil and gas and power and water
markets.
“Implementation of the new
strategic future plan gathered momentum in the year, with the group’s business
platforms making headway in consolidating their strategic positions,
competitive advantages and growth prospects,” M&R said.
The group had a “strong, quality
order book” of R46.8bn and “near orders” of R13.9bn at the end of June. That
compares to its record order book was R55.5bn.
The healthy order book
“underscores the board of director’s confidence that the group’s strategy is
starting to yield the planned outcomes”.
“The prospects for an improvement
in operational performance is encouraging and the group remains optimistic
about the longer-term outlook for natural resources markets,” it said.
SA-focused construction firms are
under severe pressure owing to a protracted downturn in the industry.
Group Five and other former
industry heavyweights, including Basil Read, have been forced into business
rescue.
M&R’s shares were 1.7% down at R11.30 on Friday afternoon.https://www.businesslive.co.za/bd/companies/industrials/2019-08-23-murray-roberts-says-full-year-earnings-have-surged/
