Murray and Roberts rides profit wave

Posted On Thursday, 03 August 2006 02:00 Published by Commercial Property News
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The building sector could be set for a better reporting season than last year, with Murray & Roberts becoming the second company to say earnings would be higher

Sean Flanagan Murray & RobertsThe building and construction sector could be set for a better reporting season than last year, with Murray & Roberts becoming the second company yesterday to say earnings would be higher.

Adjusted headline earnings a share in the year to June would be 20%-30% higher than previously. The increase excluded the negative effect of a R95m charge relating to the empowerment deal concluded in December.

First-half earnings were 35% down, mainly because of the deal. First-half earnings would have been flat if the cost of the deal was excluded.

Group Five said two weeks ago that headline earnings a share for the year ended June would be 25%-40% higher than those in the previous financial year. This was mainly due to improved operating performances from its Everite and Property Development Services divisions.

The construction sector, which has seen two AltX listings this year, is widely expected to benefit from government's multibillion-rand infrastructure plans and increased private sector investment over the next few year.

Murray & Roberts recently reshuffled management in preparation for rising demand ahead of the 2010 Soccer World Cup.

The group, SA's second largest construction company, appointed group executive director Sean Flanagan to head up the delivery of major construction projects, particularly those associated with the world cup, earlier this month.

He would oversee its role in the Gautrain rapid rail link project as part of the Bombela consortium. Murray & Roberts? share price closed 0,55% higher at R25,50 yesterday.

Last modified on Monday, 24 June 2013 12:50

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