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On behalf of the Directors, we are pleased to announce a final dividend of 71 cents per share
(2006: 40 cents per share) increasing the total dividend for the full year by 93% to 116 cents
per share (2006: 60 cents per share). Attention is drawn to the formal dividend announcement
contained herein.
Operating cash inflow is up 224% at R1,94 billion (2006: R598 million) for the year with a
year-end net cash position of R2,6 billion (2006: R1,6 billion) after net capital expenditure of
R1,0 billion
(2006: R338 million) and a net inflow of R93 million
(2006: R126 million outflow)
arising from acquisitions and disposals. The R637 million decrease in working capital (2006:
R195 million increase) reflects improved payments in Middle East and advance payments on
major projects.
Shareholders are reminded that diluted headline earnings per share is compared to
184 cents
for the year to 30 June 2006 which excluded an R87 million charge to the income statement
(22 cents) relating to the granting of shares to almost 14000 employees in terms of the Group’s
Broad Based Black Economic Empowerment (BBBEE) transaction in that year.
Headline earnings of 325 cents per share is up 77% on the previous year at the top-end of
recent guidance offered to the market and ahead of the prospects statements included in
the
2006 Annual Report and 2007 Interim Report. Headline earnings per share has been
negatively impacted by 38 cents as a result of the loss recorded by associate company
Clough in providing for finalisation of legacy projects secured pre-acquisition to the Group.
Operating profit increased 100% to R1,44 billion (2006: R719 million) on a 61% increase
in continuing revenues to R17,9 billion (2006: R11,1 billion). The operating margin of 8,0%
(2006: 6,5%) is the highest ever recorded by Murray & Roberts and has moved ahead of the
strategic range of 5,0% to 7,5% established for Rebuilding Murray & Roberts.
During the year the price of the Group’s share on the JSE Limited (JSE) increased
150% from
2540 cents to 6400 cents peaking more than 200% up at 8150 cents in July 2007. The Group
entered the JSE Top 40 Index on 7 May 2007 and has subsequently become the largest
company by market capitalisation in its sector.
Shareholder Funds increased 18% to R3,6 billion and a return of 20,9% (2006: 16,7%) on
average shareholder funds in the year exceeds the strategic Group target of 20%, despite the
currently underperforming investment in Clough.
An amount of R290 million in cash plus balance sheet support has been committed to the
recapitalisation of Clough and to increase the Group’s shareholding above 60%.
Interest-bearing long term liabilities increased slightly to R695 million (2006: R672 million).
These primarily relate to working capital loans into Clough and Cementation Canada and
instalment sales agreements in Concor. |
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