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MURRAY & ROBERTS HOLDINGS LIMITED - Annual Results for the 12 months ended 30 June 2020

Release Date: 26/08/2020 15:25
Code(s): MUR     PDF:  
Wrap Text
Annual Results for the 12 months ended 30 June 2020

(Incorporated in the Republic of South Africa)
Registration number: 1948/029826/06 
JSE Share Code: MUR  ADR Code: MURZY 
ISIN: ZAE000073441
("Murray & Roberts" or "Group" or "Company")


- Significant, quality order book: R54,2 billion (FY2019: R46,8 billion)
- Near orders: R11,4 billion (FY2019: R14,4 billion)
- Robust cash position: R1,5 billion of unrestricted cash and R2,8 billion of unutilised credit facilities
- Net asset value: R13 per share (FY2019: R13 per share)
- Revenue from continuing operations
  R20,8 billion (FY2019: R20,1 billion#)
- EBIT loss for continuing operations
  R17 million (FY2019: R847 million profit#)
- Attributable loss
  R352 million (FY2019: R337 million profit#)
- Diluted continuing loss per share
  97 cents (FY2019: 118 cents profit#)
- Diluted continuing headline loss per share
  88 cents (FY2019: 114 cents profit#)
- The Board has resolved not to declare a dividend
  Nil (FY2019: 55 cents)
- Cash, net of debt, of R0,7 billion (FY2019: R1,8 billion), and after IFRS 16 adjustment net debt of R0,1 billion

- Results for the year were negatively impacted by:
 - Estimated COVID-19 impact - R622 million
 - Vendor loan impairment - R80 million
 - Goodwill impairment - R63 million
 - Uncertified revenue impairment - R46 million

# Restated for discontinued operations
The Group reported a significant, quality order book, which includes several multi-year contracts. The project
pipeline includes a significant value of near orders, and Category 1 opportunities include four projects which are being
negotiated on a sole-source basis, one in the Mining platform and three in the Energy, Resources & Infrastructure platform,
with a combined value of approximately R40 billion. 

                                         Order        Near                                                     
R billions                                book      orders      Category 1      Category 2      Category 3    
Energy, Resources & Infrastructure        34,4         1,0            66,4            52,3           390,7    
Mining                                    19,4        10,4            45,1            39,0            60,8    
Power, Industrial & Water                  0,4           -             9,8            32,2            18,3    
30 June 2020                              54,2        11,4           121,3           123,5           469,8    
31 December 2019                          50,8         6,4            70,5            81,9           515,3    
30 June 2019                              46,8        14,4           200,4            73,2           294,2    

- Near orders: Tenders where the Group is the preferred bidder and final award is subject to financial/commercial
  close - there is more than a 95% chance that these orders will be secured
- Category 1: Tenders submitted or tenders the Group is currently working on (excluding near orders) - projects
  developed by clients to the stage where firm bids are being invited - reasonable chance of being secured as projects 
  are a function of (1) final client approval and (2) bid win probability
- Category 2: Budgets, feasibilities and prequalification the Group is currently working on - project planning
  underway, not at a stage yet where projects are ready for tender
- Category 3: Leads and opportunities which are being tracked and are expected to come to market in the next 36 months 
  - identified opportunities that are likely to be implemented, but still in pre-feasibility stage

Despite the uncertainty in the global economic outlook, the Group believes its New Strategic Future strategy, and the
assumptions on which it is based, remain sound. 

A significant, quality order book of R54,2 billion and near orders of R11,4 billion, underscore the Board's confidence in
the Group's strategy. The Group's financial position is robust and sufficient to fund its growth plans, and debt is 
within its targeted range.

In the year ahead, the focus will be on growing the order book, improving project execution, improving liquidity, 
progressing digitalisation, and exiting the Middle East - which the Board believes will support a return to profitability 
in FY2021 and a path to earnings growth beyond. 

Any forward-looking information contained in this announcement has not been audited and reported on by the Group's 
external auditors.

On behalf of the directors:
Suresh Kana                 Henry Laas                 Daniel Grobler                              
Chairman of the Board       Group Chief Executive      Group Financial Director

26 August 2020                                 

This short-form announcement is the responsibility of the directors of the Company and has not been reviewed or
audited by the Group's auditors. The information disclosed is only a summary of the full announcement and does not 
contain full or complete details. Any investment decisions should be based on the consideration of the full annual 
results announcement ("results"). Murray & Roberts' results were released on SENS on 26 August 2020 and are available 
on the Company's website and

Electronic copies of the results announcement will be emailed to stakeholders upon request from the Company's investor
relations department or our sponsor, during normal business hours. The investor relations department can be contacted

Registered office: Douglas Roberts Centre, 22 Skeen Boulevard, Bedfordview, 2007 PO Box 1000, Bedfordview, 2008 

Directors: SP Kana* (Chairman) HJ Laas (Managing & Chief Executive) DF Grobler J Boggenpoel* R Havenstein* 
NB Langa-Royds* AK Maditsi* B Mawasha* DC Radley* C Raphiri*
*Independent non-executive

Secretary: L Kok 
Registrar: Link Market Services South Africa Proprietary Limited, 13th Floor, Rennie House, 
19 Ameshoff Street, Braamfontein, 2001. 
PO Box 4844, Johannesburg, 2000 

Sponsor: The Standard Bank of South Africa Limited

Date: 26-08-2020 03:25:00
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