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| OPERATIONAL REVIEW |
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| CONSTRUCTION & ENGINEERING |
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| The upswing in infrastructure investment gained
momentum during the year and Murray & Roberts has
secured a leading role in a number of major projects. |
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| Sean Flanagan, Peter Adams, John Cooper, Keith Smith, Edwin Hewitt, Malose Chaba |
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Revenue |
EBIT before
exceptional items |
| (R millions) |
2007 |
2006 |
2007 |
2006 |
| CONSTRUCTION & ENGINEERING |
11 821 |
6 966 |
756 |
324 |
| Construction |
7 421 |
3 674 |
477 |
112 |
| Mining |
3 606 |
2 681 |
233 |
164 |
| Engineering |
794 |
611 |
46 |
48 |
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| BUILDING & CONSTRUCTION |
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Cobus Bester,
Vaneshree Naidoo,
Gordon Taylor |
Nigel Harvey,
Canada Malunga,
Piet Martins |
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View Revenue and EBIT chart  |
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A turnaround in the fortunes of the con struction business
within the SADC region and a per formance ahead of
expectation by new acquisition Concor have strengthened
the position of Murray & Roberts as a sustainable industry
leader in the Southern African construction sector.
Another strong contribution by the Middle East operation
has reinforced our reputation in that market.
Directed by a new management team led by Gordon
Taylor, Murray & Roberts Construction faced up to
systemic problems that had hampered its performance in
previous years. A number of critical measures were
introduced to strengthen risk management and ensure the
capacity to deliver major new projects awarded during a
year that heralded a new era of infrastructure investment.
The acquisition of Concor from 1 July 2006 has brought
considerable new value to Murray & Roberts. Concor is
well positioned in an important sector of the South
African infrastructure market and has strengthened our
capacity at a time of significant new opportunity. The
business is managed as an independent entity as the
market segment it serves differs from that of Murray &
Roberts Construction. |
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| Performance |
Construction SADC reported revenue of R5,0 billion
(2006: R2,1 billion), which includes a maiden contribution
of R2,1 billion by Concor. Operating profits of R328 million
(2006: R35 million) include Concor's contribution of
R114 million, a positive R76 million contribution arising from a fair value adjustment on concession investments
(2006: R68 million) and recoveries of R26 million against
losses taken in previous years on problem contracts in
Tanzania and South Africa.
Construction Middle East delivered a 60% increase in
operating profit to R123 million (2006: R77 million), on
revenues up 54% at R2,4 billion (2006: R1,6 billion).
This result reflects the good progress on the Dubai
International Airport project and the successful
completion of other projects in an environment where
negotiated partnerships are increasingly the norm with
key clients. |
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Operational review