Murray & Roberts - Consani Liquidation
Murray & Roberts Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1948/029826/06)
Share code: MUR ISIN: ZAE000008983
(`Murray & Roberts`)
Shareholders are advised that with the sanction of Murray & Roberts, the
directors of Consani Engineering (Pty) Limited (`Consani`), a wholly-owned
subsidiary within Murray & Roberts, have placed Consani into liquidation with
immediate effect.
Apart from an exchange rate assisted result in the 2003 financial year, Consani
has been under performance pressure for some time. In spite of extensive
restructuring over the past year, Consani has been unable to prove a robust
business model for sustainable profitability. A thorough risk review of the
business of Consani indicates that the SA Rand exchange rate to the US Dollar
has the greatest impact on performance potential. The current expectation is
that the SA Rand will not materially devalue against the US Dollar for some
time. Customers have resisted increased prices and have responded by re-
manufacturing their existing tank fleets to extend their useful life, and have
actively sought Chinese manufacturers who have aggressively entered the market.
Over 90% of Consani`s revenue is export sales.
Based on these criteria the Board of Murray & Roberts has noted that Consani
will not be able to continue as a viable business.
At 31 December 2004, Consani had fixed assets with a book value of R11,5
million; debtors, stock and work in progress valued at R160 million and
liabilities amounting to R216 million, of which R162 million is in loans from
Murray & Roberts.
Murray & Roberts intends taking an impairment write-off on the loan account in
the half-year results to 31 December 2004 as a non-operating expense.
Consani`s trading loss for the half year will negatively impact headline
earnings per share by approximately five cents per share.
Johannesburg
28 January 2005
Sponsor
Merrill Lynch
Date: 28/01/2005 12:33:09 PM
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