| |
|
|
| |
|
|
| |
| CHAIRMAN STATEMENT CONTINUED |
| |
| BLACK ECONOMIC
EMPOWERMENT |
Broad-based empowerment is essential for the long term
economic and social stability of South Africa as well as for
the development of the construction, mining and
engineering sectors.
Murray & Roberts has made important progress in the
implementation of a comprehensive strategy to address
the full range of empowerment requirements across its
diverse operations serving the domestic construction
economy. We have contributed to the development of the
Construction Charter and engaged in many initiatives to
meet the requirements of the Mining Charter.
The Letsema BBBEE shareholding transaction in
which Murray & Roberts purchased 10% of its issued
share capital on 19 December 2005, offers previously
disadvantaged employees, their families and the
communities in which the Group operates, a stake in the
company and its future. Since Letsema was launched,
the Murray & Roberts share price has appreciated by
more than 400%, creating wealth of over R1,7 billion for
the participants, with more than R315 million attributable
to 14 125 employees in the General Staff Trust.
In recent years, the Group has concluded a number of
BEE partnerships in its operations with partners who are
actively involved in the management and strategic
transformation of the businesses.
During the year, Murray & Roberts conducted a
comprehensive independent review of its empowerment
status relative to various industry charters and current
legislation. The review has shown that the Group meets
current empowerment criteria appropriate for procurement policy in South Africa and has identified key agenda
items for further development of this status over the
10 year time frame stipulated in the legislation to meet
future development criteria. |
| |
| SUSTAINABILITY |
Murray & Roberts is committed to enhancing the growth
of its business and adding value in a responsible
and sustainable manner. We recognise that we have a
duty to create value for our current stakeholders and
future generations.
Murray & Roberts has adopted the Global Reporting
Initiative (GRI) guidelines to measure and report per -
formance against economic, environmental and social
parameters. We apply the principle of zero disabling incident
to all aspects of our business - our people, the natural
environment in which we operate and broader society.
The Board has noted with concern the death of 11
employees and subcontractors on Murray & Roberts work
sites in South Africa during the year and we express our
condolences to their families.
With the guidance of the health, safety & environment
committee and management, the Board has imple -
mented measures to make our operations safe and, to
the fullest extent possible, injury-free. A key initiative in
this regard is the Stop.Think campaign which has been
implemented in all South African operations to improve
safety awareness and responsibility.
The wellbeing of our employees and their families is
important. The nature of our business means that our
people may be exposed to a variety of health challenges
ranging from exposure to environmental (malaria) and
occupational (respiratory) hazards to the lifestyle
consequences of work related stress and HIV infection.
A large number of our employees reside in the SADC
region and are affected by HIV/Aids. Our fixed location
manufacturing operations have introduced a high level of
awareness training and a variety of treatment programs.
We work with our clients on project operations to create
greater health and safety awareness through training and
development initiatives. |
| |
| CORPORATE GOVERNANCE |
The Board places high priority on compliance with the
Listings Requirements of the JSE Limited and the Code
of Corporate Practices and Conduct embodied in the
King Report on Corporate Governance 2002. All policy
documents and committee terms of reference have been
reviewed and revised, where necessary, during the year.
A review of the operations and structure of the Board
was undertaken in August 2007. The review was
benchmarked against the strategic requirements of
Murray & Roberts and the need to ensure the capacity to deliver these requirements and strengthen the diversity
and sector expertise of directors. The outcome of the
review was a proposal recommending changes to the
non-executive and executive composition of the Board to
be phased in over the next two years. This includes the
scheduled retirement of two non-executive directors in
2008 when they will reach the mandatory retirement age. |
| |
| BOARD OF DIRECTORS |
Dr Sibusiso Sibisi was appointed a non-executive director
with effect from 7 September 2007. Shareholders will be
requested to confirm his appointment at the annual general
meeting in October. Dr Sibisi is president and CEO of the
Council for Scientific and Industrial Research, chairman of
Denel and a non-executive director of Liberty Life. He has
achieved global academic recognition as a scientist and,
as chairman of the National Advisory Council on
Innovation, he played a central role in fostering innovation
in South Africa. I welcome Dr Sibisi to the Board.
Saki Macozoma resigned as a non-executive director
with effect from 25 October 2006. Saki was appointed
to the Board in 2001 and served as a member of the
remuneration & human resources committee and a
trustee of The Murray & Roberts Trust. I wish to thank
Saki for the valuable experience and insight he brought to
the Board, particularly with regard to South Africa's social,
economic and political development.
Norbert Jorek resigned from the Group and as an
executive director on 29 August 2007. Norbert joined the
Group and was appointed to the Board in 2004 and
played a key role in our engagement of Clough. I thank
him for his involvement during an important period in the
development of Murray & Roberts. |
| |
| APPRECIATION |
I wish to thank my colleagues on the Board for their
dedication and support during a challenging, but exciting,
year in which we formally convened seven meetings.
I would also like to thank the boards of the subsidiary and
associate companies for their untiring efforts.
I record my appreciation for the excellent performance
achieved by the group chief executive, his executives and
staff. As the mastermind of Rebuilding Murray & Roberts,
Brian Bruce has been relentless in his pursuit of our growth
and performance strategies. The commitment shown
by the people of Murray & Roberts to the ongoing
development of our Group has been exemplary and I am
confident that we have the strength and depth of leadership
required for the significant opportunities that lie ahead.
My thanks also go to our clients and our empowerment
and commercial partners for their ongoing support.
Finally, I wish to thank our shareholders, more than 40%
of whom are offshore, for the confidence they have
expressed in our Group during the year. |
| |
View share performance chart  |
| |
| TRADING STATEMENT |
| Fully diluted headline earnings per share after consolidation of Clough is expected to grow between 30% and 40% in the year ahead, supported by ongoing market related growth |
| |
| This Trading Statement has not been audited or reviewed and is provided
in terms of paragraph 3.4(b) of the JSE Listings Requirements. |
| |
 |
| |
| Roy Andersen |
| Chairman |
|
|
|
|
|
|
|
|
|
Leadership reports