Murray & Roberts Announces Steady Full Year Earnings and Dividend Payment

26 August 2015

Johannesburg, 26 August 2015 – Murray & Roberts today announced its annual results for the year ended 30 June 2015.

Henry Laas, Group Chief Executive comments, “A subdued global economy, weak demand and a slump in commodity prices, especially oil, weighed on the Group’s financial result. Against this background, the Group did well to maintain earnings broadly in line with the previous financial year and is constantly adjusting its cost structures according to market requirements.”

Group revenue from continuing operations decreased to R30,6 billion (June 2014: R36 billion) and attributable profit of R881 million was recorded (June 2014: R1 261 million, which included R422 million from discontinued operations. These disposals and consequent profits were not repeated in the new financial year). Diluted headline earnings per share from continuing operations was 201 cents (June 2014: 205 cents).

A full year dividend of 50 cents (June 2014: 50 cents) was declared. The Group's order book at year end was R38,3 billion (June 2014: R40,9 billion).

The Group ended the financial year with a net cash balance (net of interest bearing debt) of R1,4 billion (June 2014: R1,8 billion). The reduction is mainly due to advance payments not being replaced and acquisition funding.

The Group will continue to pursue opportunities in the global natural resources market sectors. Currently, internationally focussed platforms (Oil & Gas and Underground Mining) contribute 63% of revenue and 94% of earnings before interest and tax (before corporate costs).

HEALTH AND SAFETY

“The safety of its employees is of specific importance to the Group. Good safety performance is not only a moral obligation, but it positions the Group as a contractor of choice,” continues Laas.

The board of Murray & Roberts (“Board”) deeply regrets the death of four (June 2014: 4) employees (three employees and one subcontractor) who sustained fatal injuries whilst on duty. The Group’s lost time injury frequency rate (“LTIFR”) was maintained at an industry-leading level of 0.79 (June 2014: 0.80).

During the new financial year, the Group will be implementing a Major Accident Prevention programme in order to mitigate fatal risks in its operations.

DIVIDEND DECLARATION

The Board has considered and approved a new dividend policy. In terms of this policy the Board will consider paying an annual dividend, of between three and four times earnings cover. The Board has declared a gross annual dividend of 50 cents (June 2014: 50 cents) per ordinary share in respect of the year ended 30 June 2015.

PROSPECTS STATEMENT

“The Group expects a more challenging FY2016 and the declining order book over the past two years reflects the reality of a subdued global economy and weak demand for commodities, coupled with low investment in fixed capital formation in South Africa. Consequently, earnings for FY2016 will come under pressure. The natural resources market sectors are cyclical and despite more difficult trading conditions expected in the financial year ahead, the Group is well placed to realise its vision for 2020,” concludes Laas.

Ends

*Please note that this media statement contains extracts from the full Provisional Report for the year ended 30 June 2015 and should be read in conjunction with the full Provisional Report available on www.murrob.com.  

For further information contact:

Ed Jardim

Group Communications Executive

Mobile     +27 83 357 6282

E-mail: eduard.jardim@murrob.com

Murray & Roberts Client Service

Tel:          +27 (0)11 456 1144

Fax:         +27 (0)86 637 0113

E-mail: clientservice@murrob.com

Disclaimer

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 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, 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 engineering and construction services company. It has predominantly delivered infrastructure projects throughout South and Southern Africa for more than 110 years, and is today recognised as an international engineering and construction group. 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.

The Group offers engineering, procurement, construction, commissioning, operations and maintenance services in the oil & gas, underground mining, power and water as well as the civil infrastructure and building markets.

Murray & Roberts is headquartered in Johannesburg, South Africa, and is listed on the JSE Limited. It has offices in South Africa, Namibia, Botswana, Mozambique, Zambia and Ghana, the United Emirates, Australia and South Korea, Scotland, Canada, the USA and Chile.

More information is available at www.murrob.com

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