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| Prospects and Trading Statement |
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Capital Expenditure in the year increased 70% to R1,7 billion (2007: R1,0 billion) and is set
to increase by a further 30% at least in the year ahead. This level of investment is made
possible by the margins and cash flows available in the current market and ensures the
capacity needed for future growth.
Critical mass is increasingly an important differentiator for success in a market where major
and complex projects often exceed the balance sheet capacity of construction companies.
Global scale for global projects and investment programs remains a challenge in our industry
sector, where the majority of players are small relative to risk and impediments to industry
consolidation on a national level are high.
There is little indication that current levels of activity will be significantly affected by the
turmoil in international financial markets although signs of increased volatility are evident in
some market sectors. Murray & Roberts has embraced the growth challenge offered by
increased investment into its domestic and international markets and despite the associated
risks, maintains its non-negotiable commitment to sustainable earnings growth and value
creation.
Subject to a continuation in current levels of fixed investment activity in the Group’s markets,
diluted headline earnings per share for the year ahead is expected to grow between 30% and
40% and due to exceptional profits taken in the 2008 financial year, diluted earnings per
share is expected to grow between 25% and 35%.
A Business Update will be presented at the Group’s annual general meeting to be held on 28 October 2008.
This Trading Statement has not been audited or reviewed and is provided in terms of
paragraph 3.4(b) of the JSE Listings Requirements.
On behalf of the directors
Roy Andersen
Chairman of the Board
Brian Bruce
Group Chief Executive
Roger Rees
Group Financial Director
BEDFORDVIEW 27 August 2008 |
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