| Wed 29 Jun 2011, 14:43 | | MUR - Murray & Roberts - Business Update and Trading Statement |
|
MUR
MUR
MUR - Murray & Roberts - Business Update and Trading Statement
MURRAY & ROBERTS HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1948/029826/06
JSE Share Code: MUR
ISIN: ZAE000073441
("Murray & Roberts" or "Group")
BUSINESS UPDATE AND TRADING STATEMENT
The board of directors of Murray & Roberts ("Board") met on 29 June 2011 to
consider inter alia the financial results for the current year to 30 June 2011.
Following the announcement made to shareholders on 23 February 2011, the Board
is pleased to announce that good progress has been made with the resolution of
its major projects challenges.
* Agreement has been reached with Hitachi on a sustainable way
forward that includes final settlement on actual costs incurred by
Murray & Roberts in fulfilment of the Medupi and Kusile
subcontracts from inception to 30 June 2011. Future commercial
arrangements have been agreed and subject to performance, the
remaining work on both subcontracts will deliver a margin within
the Group`s published strategic range of 5,0% to 7,5%.
* Agreement has been reached with Eskom on a process that resolves
the scope and cash flow challenges on the Medupi civil works
contract. The parties are working positively together to ensure
delivery of this contract within an agreed timeframe and budget.
* The Gautrain Project is nearing completion and Bombela Concession
Company will lodge its arbitration Statement of Claim on or about
30 June 2011 in connection with the Land Deficiencies and related
disputes that negatively impacted the contract.
These and other initiatives will result in a significant improvement in the
Group`s cash position at 30 June 2011, and net debt will be several hundreds of
millions of Rand lower than the net debt of R1,1 billion at 31 December 2010.
This includes a planned increase of working capital into the Gautrain Project
and new working capital demands on a troubled marine project in Australia.
The primary factors that have influenced the performance of the Group and the
potential financial outcome for the current financial year to 30 June 2011 are
as follows:
* Ongoing recessionary conditions in the South African and Middle
East construction economies, resulting in performance weakness in
the Group`s construction, engineering and materials businesses;
* Ongoing SA Rand strength;
* A difficult marine construction market for Clough in Southeast
Asia in the first half-year;
* Losses recognised on the Gorgon Pioneer Materials Offloading
Facility in Australia, which has experienced scope changes,
delayed access and weather delays;
* High finance charges due to the funding of working capital; and
* A significant improvement in the performance of the Cementation
Group.
The Group`s order book is steady at about R52 billion, of which about R19
billion relates to remaining works on the South African Power Program.
In terms of the JSE Limited Listings Requirements, the publication of a trading
statement is required as soon as a company is satisfied that a reasonable degree
of certainty exists that the financial results for the period to be reported
upon next will differ by at least 20% from the financial results of the prior
comparable period. Considering the level of exceptional charges and loss on
discontinued operations recorded in the half-year and to date, diluted headline
earnings per share and earnings per share will show a loss for the financial
year to 30 June 2011.
Operating profit, diluted headline earnings per share and earnings per share all
from continuing operations will be lower by more than 20% relative to the
previous comparable period. More specific guidance will be given once the
financial year end review of major projects is complete.
The financial information on which this trading statement is based has not been
reviewed or reported on by the Group`s external auditors.
Shareholders are reminded that Murray & Roberts will publish its preliminary
results for the financial year to 30 June 2011 on or about Wednesday 31 August
2011.
Bedfordview
29 June 2011
Sponsor:
Deutsche Securities (SA) (Pty) Ltd
Date: 29/06/2011 14:43:02 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
