| Fri 8 Oct 2010, 12:20 | | RBX - Raubex Group Limited - Results of annual general meeting |
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RBX
RBX
RBX - Raubex Group Limited - Results of annual general meeting
RAUBEX GROUP LIMITED
(Previously Lexpub 49 Investments Limited)
(Incorporated in the Republic of South Africa)
(Registration number 2006/023666/06)
JSE Share code: RBX
ISIN: ZAE000093183
Results of Annual General Meeting
Raubex shareholders are advised that at the Annual General Meeting of members
held on Friday, 8 October 2010, all resolutions as proposed in the Notice of the
Annual General Meeting were approved by the requisite majority of members. The
special resolution will be lodged with the Companies and Intellectual Property
Registration Office for registration in due course.
At the Annual General Meeting, Mr. M Swana (non-executive director) did not seek
re-election and accordingly resigned from the Board. The Board is actively
reviewing candidates to fill the position left vacant and expects an
announcement in this regard to be made before the end of the year.
The chairman, Collin Matjila, made the following address at the Annual General
Meeting:
"Despite challenging trading conditions, Raubex continued to strengthen its
position as a key player in the construction sector and we are pleased with the
growth in profitability and revenue achieved in the year under review.
Operationally, the past year was marked by a number of factors including above
average rainfall in South Africa`s northern provinces and Zambia. We also saw a
marked increase in the interest shown by small and large construction companies
in the roads infrastructure sector which resulted in increased margin pressures
across the industry.
This is not new to Raubex and similar cycles have happened in the Group`s
history. We believe that scale, vertical integration and market position are key
factors that will enable us to successfully navigate through such periods.
The industry continues to transition from the incredible pre-world cup frenzy to
a more sedate level activity against a backdrop of continued economic
uncertainty both locally and abroad. We expect this to continue for some time
notwithstanding signs of recovery now filtering through as shown by the increase
in mining activities driven by higher commodity prices. Likewise, we are seeing
some encouraging signs for road infrastructure at provincial level and on the
water management front.
The volume of tenders being issued remains stable and despite the increased
competition, Raubex has successfully maintained a healthy order book with
satisfactory margins in all areas of its business. An important factor to
consider when looking at our order book is the fact that only guaranteed work is
reflected. This adds significant certainty to our future outlook.
Raubex also continues to deliver on its geographical expansion into carefully
selected countries. Work in Namibia and Malawi is progressing well. Our Zambian
operations have been negatively affected by the strength of the Rand and slower
payment timelines. As a result, we have downscaled our operations to ensure
adequate profitability in the short term.
The Group has the ability to successfully operate in tough operating conditions
and our strategic emphasis on sustainability and long-term prospects have seen
us broaden our exploratory efforts beyond the SADC region and into India were
significant prospects exist in terms of road infrastructure.
Although we expect the short term to be demanding, our long-term outlook remains
positive with a number of concession contracts currently in the pipeline in
South Africa including the N1N2 Winelands project, which we are tendering on
with our chosen partners, and the continuation of the Gauteng Freeway
Improvement Programme. Other similarly attractive opportunities are presenting
themselves across SA and throughout the region where we are looking to reproduce
our successful business model.
Notwithstanding the impact of the extended World Cup related shutdown and
increased competition, current trading gives us confidence that Raubex will be
able to maintain a healthy financial position in the year ahead.
I would like to thank my colleagues on the board, our investors, customers and
suppliers for their loyal support and commend everyone at Raubex, management and
staff alike, for their considerable efforts and contribution during the past
year."
ENQUIRIES
Raubex Group Limited +27 12 665 3226
Francois Diedrechsen, Commercial and Financial Director
College Hill +27 11 447 3030
Frederic Cornet +27 83 307 8286
Morne Reinders +27 82 480 4541
www.raubex.co.za
Investment Bank and Sponsor
Investec Bank Limited
Johannesburg
8 October 2010
Date: 08/10/2010 12:20:01 Produced by the JSE SENS Department.
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