| OPERATIONAL REVIEW |
| |
| CORPORATE |
| |
| Corporate intervention has played a leading role in the
development of Murray & Roberts. Our corporate office
provides leadership, strategic direction, support and
performance targeting to group companies in terms of
our philosophy of a Unitary Murray & Roberts. |
| |
 |
| Millard Arnold, Andrew Skudder, Cheryl van Bosch, Ian Appleton, Gerhard Moerdijk , Roger Mower*, Terry Rensen, Yunus Karodia |
| *International |
| |
 |
| Peter Young, Tyron Botha, Frank Kruger, Ged Evetts, Bal Panicker*, Richard Pope*, Daan van Schalkwyk, Greg Ker-Fox |
| *International |
| |
|
Revenue |
EBIT before
exceptional items |
| (R millions) |
2007 |
2006 |
2007 |
2006 |
| CORPORATE |
- |
– |
(165) |
(147) |
|
| |
| Corporate overheads increased marginally to R144 million
(2006: R140 million) in the year, excluding a charge of
R21 million (2006: R7 million) relating to share-based
payments accounted for in terms of IFRS 2. |
| |
| Leadership |
The directors of Murray & Roberts Limited have formed the
group executive committee which meets monthly and is
responsible for overseeing the management and operations
of the Group. The chief executive forum meets quarterly
and brings together operational and corporate leadership.
We have strengthened our corporate leadership capacity
at a time of immense opportunity. Group executive
director Sean Flanagan assumed corporate responsibility
for the delivery of designated major construction projects
associated with the 2010 Soccer World Cup. This
includes the infrastructure delivery and systems
integration of the Gautrain project. Sean maintains his
responsibility for corporate oversight of SADC mining
contracting and RUC Australia. Group executive director
Keith Smith was appointed chairman of all SADC building
and construction companies. He relinquished his
responsibility for construction materials during the year
and was succeeded by Andrew Langham.
Our international corporate capability was enhanced in
the new financial year with the return of John Cooper as
chief executive of Murray & Roberts in Australia following
his temporary role as chief executive of associate
company Clough Limited. |
| |
| Risk management |
Terry Rensen is corporate services director responsible
for group risk management and mitigation, information
technology and group benefits. He is supported by Greg
Ker-Fox (risk management), Carla Clamp (internal audit),
Tyron Botha (HSE), Daan van Schalkwyk (ITC) and Gerard
Moerdijk (benefits).
An operational risk committee has been constituted to
act as custodian of the Group's risk appetite and will
interrogate risks associated with key decisions.
Group risk also provides valuable leadership in acquisition
due diligence reviews, major bid development, project
audits and strategic and project risk assessments.
Details of our risk framework and policies are published
in the sustainability report. |
| |
| Governance |
Our corporate governance framework was established in
2003 and is constantly reviewed to ensure compliance
with latest international and domestic practice.
A full corporate governance report is published in the
sustainability report. |
| |
| Finance |
We have a strong corporate finance team which ensures
reporting compliance and delivers taxation, treasury,
reporting and technical accounting leadership to the Group.
Our treasury provides the Group with access to local and
foreign funding markets using a treasury system that
operates within a framework of approved authority levels,
products and counter parties.
We operate within a number of complex tax jurisdictions.
Income tax, secondary tax on companies, capital gains
tax and other taxes are planned in the context of our
growth profile. |
| |
| Commercial |
| Millard Arnold is legal counsel in the office of the group
chief executive where he is responsible for administration
and consistency in contracts and legal services at an
executive leadership level. Millard also engages in legal
due diligence and the management of reputational
issues. A free flow of information concerning legal
matters in the Group is maintained to ensure that we
learn from our varied experiences. |
| |
| Communication |
We are committed to open and honest communication
with all our stakeholders, including customers, employees,
communities, business associates and society at large.
This annual report is an important reporting medium
that satisfies the Listings Requirements of the JSE
and reports our progress in complying with the
recommendations of King II.
We offer a range of other communication platforms,
including: |
| |
| • |
the Murray & Roberts website www.murrob.com |
| • |
an interactive CE Forum on the web site |
| • |
financial results presentations and trading updates |
| • |
a quarterly house journal, Robust |
| • |
the Murray & Roberts Interchange |
| • |
a Murray & Roberts client service centre |
| • |
interventions for employee access to management |
|
| |
| Corporate Social Involvement |
The Murray & Roberts corporate social involvement (CSI)
program demonstrates our commitment to sustainable
social development. We appreciate that our business
activities have an impact on the communities in which
we operate and we are committed to managing this
impact responsibly.
Our key focus areas and investments are outlined in the
sustainability report. |
| |
| Health, safety & environment |
Integrated within the risk management framework, we
have established health, safety and environmental (HSE)
management as an integral component of our leadership
strategy. The primary role of our corporate HSE capacity
is to oversee and lead the Group's commitment to zero
disabling incident through sound HSE management in all
aspects of its business activities.
Tyron Botha is champion of our risk-based approach to
HSE with responsibility for driving and coordinating the
implementation of the Stop.Think campaign.
Details of our HSE framework and policies are published in
the sustainability report on pages 62 to 64 and 74 to 75. |
| |
| Human capital development |
A key strategic imperative is to ensure that our human
capital is a competitive advantage.
The Murray & Roberts human capital strategic framework
defines global best practice and focuses on issues that
have the greatest impact on our ability to achieve our
strategic objectives. A key element of the human capital
strategic framework is the Group's leadership succession
and development framework, which aims to deliver the
leadership the Group requires to achieve its growth
objectives. This framework is being implemented across
the Group under the leadership of Andrew Skudder
and includes a best practice performance management
& development process and a CEO-led leadership
succession review. Andrew Skudder also leads the
Group's BBBEE Letsema Initiative, the offset investment
program and the corporate social involvement program.
Details of our HR framework and practices are outlined in
the sustainability report. |
Operational review