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MURRAY & ROBERTS HOLDINGS LIMITED - Reviewed Interim Results for the six months ended 31 December 2012

Release Date: 28/02/2013 08:00
Code(s): MUR     PDF:  
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Reviewed Interim Results for the six months ended 31 December 2012

MURRAY & ROBERTS HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1948/029826/06
JSE Share Code: MUR 
ADR Code: MURZY
ISIN: ZAE000073441
(Murray & Roberts or Group or Company)


REVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2012

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE
for the six months ended 31 December 2012

                                 Reviewed       Reviewed1*         Audited1
                              6 months to      6 months to           Annual
                              31 December      31 December          30 June
                                     2012             2011             2012
R millions
Continuing operations
Revenue                            16 344           15 015           31 668 
Profit/(Loss) before 
interest, depreciation 
and amortisation                      764              (33)             243 
Depreciation                         (349)            (284)            (576)
Amortisation of 
intangible assets                     (15)             (11)             (25)
Profit/(Loss) before 
interest and taxation 
(note 2)                              400             (328)            (358)
Net interest expense                  (76)             (90)            (248)
Profit/(Loss) before 
taxation                              324             (418)            (606)
Taxation                             (109)            (198)            (221)
Profit/(Loss) after 
taxation                              215             (616)            (827)
Income from equity 
accounted investments                 112               63              143 
Profit/(Loss) from 
continuing operations                 327             (553)            (684)
Profit from discontinued 
operations (note 3)                    93               72               92 
Profit/(Loss) for the 
period                                420             (481)            (592)
Attributable to:
  Owners of 
Murray & Roberts 
Holdings Limited                      262             (528)            (736)
  Non-controlling 
interests                             158               47              144 
                                      420             (481)            (592)
Earnings/(Loss) per 
share from continuing 
and discontinued 
operations (cents)
  Diluted                             64             (161)            (214)
  Basic                               64             (161)            (214)
Earnings/(Loss) per 
share from continuing 
operations (cents)
  Diluted                             43             (187)            (246)
  Basic                               44             (187)            (247)
Net asset value per 
share (Rands)                          14               12               13 

SUPPLEMENTARY STATEMENT OF FINANCIAL PERFORMANCE INFORMATION
Number of ordinary 
shares in issue (000)            444 736          331 893          444 736 
Reconciliation of 
weighted average 
number of shares 
in issue (000)
Weighted average 
number of ordinary 
shares in issue                   444 736          367 784          382 712 
Less:  Weighted average 
number of shares held by 
The Murray & Roberts Trust         (4 753)          (6 678)          (6 338)
Less:  Weighted average 
number of shares held by 
the Letsema BBBEE trusts          (31 884)         (31 955)         (32 115)
Less:  Weighted average 
number of shares held by 
the subsidiary companies           (1 303)            (749)            (736)
Weighted average number 
of shares used for basic 
per share calculation             406 796          328 402          343 523 
Add:   Dilutive adjustment 
for share options                   4 012              285              699 
Weighted average number 
of shares used for diluted 
per share calculation             410 808          328 687          344 222 
1  Restated for discontinued operations.
* The weighted average number of shares in issue have been adjusted in the 
prior period due to the rights issue made to shareholders in April 2012.

Headline profit/(loss) 
per share from 
continuing and 
discontinued 
operations (cents) (note 4)
  Diluted                             69             (190)            (246)
  Basic                               69             (190)            (246)
Headline profit/(loss) 
per share from 
continuing operations 
(cents) (note 4)
  Diluted                             44             (195)            (261)
  Basic                               44             (195)            (262)


CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 31 December 2012

                                 Reviewed         Reviewed          Audited
                              6 months to      6 months to           Annual
                              31 December      31 December          30 June
                                     2012             2011             2012
R millions
Profit/(Loss) for 
the period                            420             (481)            (592)
Effects of cash 
flow hedges                             8               16               20 
Taxation related to 
effects of cash 
flow hedges                            (2)              (5)              (4)
Effects of 
available-for-sale 
financial assets                        -                -               (1)
Foreign currency 
translation movements                 134              570              617 
Total comprehensive 
income for the period                 560              100               40 
Attributable to:
  Owners of 
Murray & Roberts 
Holdings Limited                      345             (110)            (298)
  Non-controlling 
interests                             215              210              338 
                                      560              100               40 


CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
at 31 December 2012

                                 Reviewed         Reviewed          Audited
                              6 months to      6 months to           Annual
                              31 December      31 December          30 June
                                     2012             2011             2012
R millions
ASSETS
Non-current assets                  8 072            5 964            8 394
Property, plant and 
equipment                           2 980            3 511            3 600
Goodwill                              438              438              437
Deferred taxation assets              638              535              634
Investments in associate 
companies                           1 013              679              885
Amounts due from 
contract customers 
(note 5)                            2 181                -            2 060
Other non-current 
assets                                822              801              778
Current assets                     12 422           13 518           13 143
Inventories                           315              866              731
Trade and other 
receivables                         2 809            2 548            2 127
Amounts due from 
contract customers 
(note 5)                            5 259            6 462            6 806
Current taxation assets                 -                -               91
Cash and cash equivalents           4 039            3 642            3 388
Assets classified 
as held-for-sale                    2 207            1 142              905
TOTAL ASSETS                       22 701           20 624           22 442
EQUITY AND LIABILITIES 
Total equity                        7 581            5 268            7 102
Attributable to owners 
of Murray & Roberts 
Holdings Limited                    6 251            4 130            5 887
Non-controlling interests           1 330            1 138            1 215
Non-current liabilities             1 918            3 169            1 596
Long-term liabilities2                547            2 615              494
Long-term provisions                  189              147              165
Deferred taxation 
liabilities                           166              334              211
Other non-current 
liabilities                         1 016               73              726
Current liabilities                12 614           11 859           13 495
Amounts due to contract 
customers (note 5)                  3 312            2 985            3 019
Accounts and other payables         6 806            7 714            8 609
Current taxation liabilities          139              112              175
Bank overdrafts2                    1 302              523               39
Short-term loans2                   1 055              525            1 653
Liabilities directly 
associated with assets 
classified as held-for-sale           588              328              249
TOTAL EQUITY AND LIABILITIES       22 701           20 624           22 442
2 Interest-bearing borrowings.


CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 31 December 2012

                                                  Attrib-                  
                  Stated                           utable                  
                capital,                               to                  
                   Share                           owners      Non-        
                 capital                        of Murray  control-        
                     and                        & Roberts      ling        
                   share      Other   Retained   Holdings    inter-        
                 premium   reserves   earnings    Limited      ests   Total
R millions
Balance at 
30 June 2011 
(Audited)            757        189      3 275      4 221     1 100   5 321 
Total 
comprehensive 
income/(loss) 
for the period         -        418       (528)      (110)      210     100 
Treasury shares 
acquired (net)         3          -          -          3         -       3 
(Disposal)/
purchase of 
non-controlling 
interests (net)        -          -          -          -       (95)    (95)
Net movement in 
non-controlling 
interests loans        -          -          -          -       (13)    (13)
Recognition of 
share-based 
payment                -         18          -         18         -      18 
Transfer to 
non-controlling 
interests              -         (2)         -         (2)        2       - 
Dividends 
declared 
and paid               -          -          -           -      (66)    (66)
Balance at 
31 December 2011 
(Reviewed)           760        623      2 747       4 130    1 138   5 268 
Total 
comprehensive 
income/(loss) 
for the period         -         20       (208)       (188)     128     (60)
Rights issue 
to owners of 
Murray & Roberts 
Holdings Limited 
(net of 
transaction 
costs)             1 910          -          -       1 910        -   1 910 
Treasury 
shares 
acquired (net)        40          -          -          40        -      40 
(Disposal)/
purchase of 
non-controlling 
interests (net)        -          -        (12)        (12)     (57)    (69)
Net movement in 
non-controlling 
interests loans        -          -          -           -       (8)     (8)
Disposal of 
business               -         (1)         -          (1)       -      (1)
Issue of shares to 
non-controlling 
interests              -          -          -           -       23      23 
Transfer to 
retained earnings      -        (32)        32           -        -       - 
Recognition of 
share-based payment    -         15          -          15        -      15 
Dividends 
declared and paid3     -          -         (7)         (7)      (9)    (16)
Balance at 
30 June 2012 
(Audited)          2 710        625      2 552       5 887    1 215   7 102 
Total 
comprehensive 
income for the 
period                 -         83        262         345      215     560 
Issue of shares to 
non-controlling 
interests              -          -          -           -        1       1 
Net movement in 
non-controlling 
interests loans        -          -          -           -      (29)    (29)
Transfer to 
non-controlling 
interests              -         (2)         -          (2)       2       - 
Recognition of 
share-based 
payment                -         21          -          21        -      21 
Dividends 
declared 
and paid               -          -          -           -      (74)    (74)
Balance at 
31 December 2012 
(Reviewed)         2 710        727      2 814       6 251    1 330   7 581
3 Dividends relate to distributions made by entities that hold treasury shares.


CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
for the six months ended 31 December 2012

                                 Reviewed         Reviewed          Audited
                              6 months to      6 months to           Annual
                              31 December      31 December          30 June
                                     2012             2011             2012
R millions
Cash generated by/
(utilised in) operations              549           (1 373)          (1 580)
Interest received                      51               49              107 
Interest paid                        (128)            (159)            (388)
Taxation paid                         (96)            (146)            (429)
Operating cash flow                   376           (1 629)          (2 290)
Dividends paid to 
owners of 
Murray & Roberts 
Holdings Limited                        -                -               (7)
Dividends paid to 
non-controlling 
interests                             (74)             (66)             (75)
Cash flow from 
operating activities                  302           (1 695)          (2 372)
Acquisition of businesses               -              (14)             (15)
Acquisition of 
share capital in 
start up company                        -                -              (10)
Acquisition of 
non-controlling interests               -                -              (48)
Dividends received from 
associate companies                    26               16               46 
Acquisition of associates               -                -             (133)
Increase in investments                 -              (67)             (67)
Purchase of other 
investments by 
discontinued operations                 -              (50)             (40)
Purchase of investment 
property                                -                -              (20)
Purchase of intangible 
assets other than goodwill            (11)              (5)             (17)
Purchase of property, plant 
and equipment by 
discontinued operations                (4)             (36)             (34)
Purchase of property, 
plant and equipment                  (554)            (430)            (959)
  Replacements                      (151)            (138)            (569)
  Additions                         (403)            (292)            (390)
Proceeds on disposal of 
property, plant and equipment          25               66              164 
Proceeds on disposal of 
businesses (note 7)                    80              857              822 
Proceeds on disposal of 
assets held-for-sale                   72               95              127 
Proceeds on disposal of 
investments in associates               -                6               15 
Cash related to acquisition/
(disposal) of businesses                -                -             (271)
Cash related to assets 
held-for-sale                        (104)             (83)             258 
Proceeds from loan 
repayments and dividends 
received                               66               -               165 
Other (net)                             4               (2)               2 
Cash flow from investing 
activities                           (400)             353              (15)
Net (decrease)/increase 
in borrowings                        (641)           1 077              342 
Treasury share disposals 
(net)                                   -                3               43 
Proceeds on share issue 
to non-controlling 
interests                               1                -               23 
Proceeds from rights 
issue to owners of 
Murray & Roberts 
Holdings Limited 
(net of transaction costs)              -                -            1 910 
Cash flow from financing 
activities                           (640)           1 080            2 318 
Net decrease in cash 
and cash equivalents                 (738)            (262)             (69)
Net cash and cash 
equivalents at 
beginning of period                 3 349            3 054            3 054 
Effect of foreign 
exchange rates                        126              327              364 
Net cash and cash 
equivalents at 
end of period                       2 737            3 119            3 349 


CONDENSED CONSOLIDATED SEGMENTAL ANALYSIS
for the six months ended 31 December 2012

                                 Reviewed        Reviewed1         Audited1
                              6 months to      6 months to           Annual
                              31 December      31 December          30 June
                                     2012             2011             2012
R millions
Revenue4
Construction Africa 
and Middle East                     3 463            4 379            8 108 
Engineering Africa                  2 548            2 322            5 213 
Construction Global 
Underground Mining                  4 019            4 696            9 859 
Construction Australasia 
Oil & Gas and Minerals              6 314            3 618            8 484 
Corporate & Properties                  -                -                4 
Continuing operations              16 344           15 015           31 668 
Discontinued operations             2 428            2 866            5 476 
                                   18 772           17 881           37 144 
Continuing operations
Profit/(Loss) before 
interest and taxation5
Construction Africa and 
Middle East                            33             (779)          (1 317)
Engineering Africa                     35              103              200 
Construction Global 
Underground Mining                     86              335              605 
Construction Australasia 
Oil & Gas and Minerals                334               82              286 
Corporate & Properties                (88)             (69)            (132)
Profit/(Loss) before 
interest and taxation                 400             (328)            (358)
Net interest expense                  (76)             (90)            (248)
Profit/(Loss) before taxation         324             (418)            (606)
Discontinued operations 
Profit before interest 
and taxation5                         125              111              180 
Net interest expense                   (1)             (20)             (32)
Profit before taxation                124               91              148 
4 Revenue is disclosed net of inter-segmental revenue. Inter-segmental 
revenue for the Group is R167 million (2011: R41 million and June 2012: 
R257 million).
5 The chief operating decision maker utilises profit/(loss) before interest 
and taxation in the assessment of a segments performance.


SEGMENTAL ASSETS
at 31 December 2012

                                 Reviewed         Reviewed          Audited
                              6 months to      6 months to           Annual
                              31 December      31 December          30 June
                                     2012             2011             2012
R millions
Construction Africa and 
Middle East                         5 096            4 996            5 683 
Engineering Africa                  1 776            1 652            2 102 
Construction Products Africa        2 315            2 762            2 755 
Construction Global 
Underground Mining                  3 305            3 324            3 606 
Construction Australasia 
Oil & Gas and Minerals              4 315            2 822            3 995 
Corporate & Properties              1 217              891              188 
                                   18 024           16 447           18 329 
Reconciliation of 
segmental assets
Total assets                       22 701           20 624           22 442 
Deferred taxation assets             (638)            (535)            (634)
Current taxation assets                 -                -              (91)
Cash and cash equivalents          (4 039)          (3 642)          (3 388)
                                   18 024           16 447           18 329


NOTES

1. Basis of preparation

The Group operates in the construction, engineering and mining environment 
and as a result the revenue is not seasonal in nature but is influenced by 
the nature of the contracts that are currently in progress. Refer to 
commentary for a more detailed report on the performance of the different 
operating platforms within the Group.

The condensed reviewed consolidated financial statements have been prepared 
in compliance with the Listings Requirements of the JSE Limited, the 
recognition and measurement requirements of International Financial 
Reporting Standards (IFRS), the requirements of International Accounting 
Standards (IAS) 34, Interim Financial Reporting, SAICA Financial Reporting 
Guides as issued by the Accounting Practices Committee and the South African 
Companies Act, No. 71 of 2008. These statements were compiled under the 
supervision of Mr AJ Bester, the Group Financial Director. 

The accounting policies used in the preparation of these results are in 
accordance with IFRS and are consistent in all material respects with those 
used in the audited annual financial statements for the year ended 30 June 
2012.

The review has been conducted in accordance with International Standards on 
Review Engagements 2410, Review of Interim Financial Information Performed 
by the Independent Auditor, Deloitte & Touche, and their unmodified review 
opinion is available for inspection at the Companys registered office.  Any 
reference to future financial performance included in this announcement has 
not been reviewed or reported on by the Groups external auditors.

2. Profit/(Loss) before interest and taxation 

Profit/(loss) before interest and taxation includes the following 
significant items:
                              31 December      31 December          30 June
R millions                           2012             2011             2012
GPMOF                                   -             (600)          (1 189)
Middle East operations                  -             (231)            (387)
Other impairments                     (20)               -              (25)
                                      (20)            (831)          (1 601)
Items by nature1 
Cost of sales                     (14 854)         (14 516)         (30 628)
Distribution and 
marketing expenses                     (4)              (5)             (14)
Administration expenses            (1 296)          (1 084)          (2 259)
Other operating income                210              262              875 
                                  (15 944)         (15 343)         (32 026)

3. Profit from discontinued operations

The Group disposed of a portion of its Steel Business at the beginning of 
the 2013 financial year, with the sale of the remaining portion currently 
being finalised and payment expected to be received in March 2013.  The 
Board has taken the decision to dispose of the Groups Construction Products 
Africa operating platform as its operations are considered to be non-core 
to the Group. The Construction Products Africa operating platform comprises 
of the following entities: Hall Longmore; Rocla; Much Asphalt; Ocon; 
Technicrete and UCW.  The Group continues to dispose of its investment 
properties. The sale of UCW was finalised in January 2013 and proceeds are 
expected to be received by June 2013.

                              31 December      31 December          30 June
                                     2012             2011             2012
R millions 
Revenue                             2 428            2 866            5 476 
Profit before interest, 
depreciation and 
amortisation                          159              161              268 
Depreciation and 
amortisation                          (34)             (50)             (88)
Profit before interest 
and taxation                          125              111              180 
Net interest expense                   (1)             (20)             (32)
Taxation expense                      (31)             (19)             (57)
Income from equity 
accounted investments                   -                -                1 
Profit from discontinued 
operations                             93               72               92 
Non-controlling 
interests relating to 
discontinued operations                (9)              15               20 
Cash flows from 
discontinued operations 
include the following:
Cash flow from 
operating activities                  (13)              36             (139)
Cash flow from 
investing activities                  (74)             839            1 089 
Cash flow from 
financing activities                   73             (356)            (483)
Net (decrease)/increase 
in cash and cash equivalents          (14)             519              467 

4. Reconciliation of headline profit/(loss)

                              31 December     31 December1         30 June1
                                     2012             2011             2012
R millions 
Profit/(Loss) attributable 
to owners of 
Murray & Roberts 
Holdings Limited                      262            (528)             (736)
Investment property 
fair value adjustments                  -                -              (32)
Profit on disposal of 
businesses (net)                      (50)            (59)              (47)
Profit on disposal of 
associates (net)                        -              (5)              (13)
Loss/(Profit) on disposal 
of property, plant and 
equipment (net)                         1             (30)              (44)
Impairment of goodwill 
and other assets+                      20                -               24 
Fair value adjustment and
loss/(profit) on disposal 
of assets held-for-sale                47             (29)              (29)
Other (net)                             -               -                (4)
Non-controlling interests 
effects on adjustments                  4              18                21 
Taxation effects on 
adjustments                            (2)             10                14 
Headline profit/(loss)                282            (623)             (846)
Adjustments for 
discontinued operations:
Profit from discontinued 
operations                            (93)            (72)              (92)
Non-controlling interests               9             (15)              (20)
Investment property fair 
value adjustments                       -               -                20 
Profit on disposal of 
businesses (net)                       50              59                47 
Profit on disposal of 
associates (net)                        -               5                 3 
Profit on disposal of 
property, plant and 
equipment (net)                         -               -                (1)
Impairment of other assets+           (20)              -               (25)
Fair value adjustment and 
(loss)/profit on disposal 
of assets held-for-sale               (47)             29                29 
Non-controlling interests 
effects on adjustments                 (4)            (20)              (18)
Taxation effects on 
adjustments                             2              (3)                3 
Headline profit/(loss) 
from continuing operations            179            (640)             (900)
+ The impairment relates to an assessment performed of the fair value less 
costs to sell in comparison to the carrying value of plant and equipment in
the Construction Products Africa operating platform.

5. Contracts-in-progress and contract receivables

                              31 December      31 December          30 June
                                     2012             2011             2012
R millions 
Contracts-in-progress 
(cost incurred plus 
recognised profits, 
less recognised losses)             2 149            1 435            2 849 
Uncertified claims and 
variations less payments 
received on account 
(recognised in terms of 
IAS 11: Construction 
Contracts)                          1 849            2 203            1 951 
Uncertified claims 
and variations                      1 849            2 675            2 001 
Less: Payments received 
on account                              -             (472)             (50)
Amounts receivable on 
contracts (net of 
impairment provisions)              3 054            2 539            3 642 
Retentions receivable 
(net of impairment provisions)        388              285              424 
                                    7 440            6 462            8 866 
Amounts received in excess 
of work completed                  (3 312)          (2 985)          (3 019)
                                    4 128            3 477            5 847 
Disclosed as:
Amounts due from 
contract customers  
non-current                         2 181                -            2 060 
Amounts due from 
contract customers  
current                             5 259            6 462            6 806 
Amounts due to contract 
customers  current                (3 312)          (2 985)          (3 019)
                                    4 128            3 477            5 847 

During the period between December 2011 and June 2012, circumstances changed 
and developed which resulted in a portion of amounts due from contract 
customers being expected to be received only after 12 months from the end of 
June 2012. Therefore, these amounts have been classified as non-current on 
the statement of financial position. Management considers these amounts to 
be fully recoverable. No further change in circumstances has occurred 
between June 2012 and December 2012.

6. Contingent liabilities 

Contingent liabilities are related to disputes, claims and legal proceedings 
in the ordinary course of business. The Group does not account for any 
potential contingent liabilities where a back to back arrangement exists 
with clients or subcontractors, and there is a legal right to offset.

                              31 December      31 December          30 June
                                     2012             2011             2012
R millions 
Operating lease 
commitments                         2 161            1 968            2 058 
Contingent liabilities              1 280            1 238            1 445 
Financial institution 
guarantees                         10 639            9 740           10 285 

The Competition Commission (Commission) engaged the construction industry 
in April 2011 and the Group submitted applications through the April 2011 
Fast-Track process. A provision was raised based on the potential violations 
that were identified as a result of this process.  The Board is of the 
opinion that the provision raised for this liability is adequate to cover 
any additional penalties that may arise as a result of the investigation. 
However, there is no guarantee as to the size of the penalty or the 
sufficiency of the provision.

7. Business acquisitions/disposals

The Group did not make any acquisitions during the six months ended 
31 December 2012.

The Group disposed of a portion of the Steel Business during the course of 
this financial period.

8. Dividend 

The Board has resolved not to declare a dividend.

9. Related party transactions

There have been no significant changes to the nature of related party 
transactions since 30 June 2012. 

10. Events after reporting date 

The directors are not aware of any matter or circumstance arising after the 
period ended 31 December 2012, not otherwise dealt with in the Groups 
interim results, which significantly affects the financial position at 
31 December 2012 or the results of its operations or cash flows for the 
period then ended.


COMMENTARY

Salient Features

-  Strong improvement in Health and Safety
-  Return to profitability
-  Revenue improved by 9% to R16,3 billion
-  Attributable earnings improved from a loss of R528 million 
   to a profit of R262 million
-  HEPS improved from a loss of 190 cents to a profit of 69 cents
-  Order book stable at R48,3 billion
-  Net cash of R1,1 billion 
-  Disposal of non-core assets commenced

Positioned for Growth

The Board is pleased to announce that the Group has returned to 
profitability, mainly as a result of the completion of problematic 
contracts, which reported losses in prior financial periods. 

Following the Global Financial Crisis and major losses on several large 
projects, Murray & Roberts on 1 July 2011 embarked on a three year Recovery 
& Growth strategy. The plan for the Recovery year to June 2012 was 
successfully implemented and the Board approved the Growth strategy for the 
2013 and 2014 financial years. 

In developing the Growth strategy, the Board evaluated all market sectors 
and geographies in which the Group is active, with the objective to identify 
those market sectors and geographies that present the best long-term 
financial growth potential to shareholders.

The Groups current operating platforms are no longer optimally aligned with 
those market sectors and geographies identified. The Growth strategy is thus 
primarily focused on disposals and acquisitions. Achieving increased 
profitability in the South African operations will also continue to be a 
priority.

Financial Report 
for the six months ended 31 December 2012 and Cautionary Announcement

As stated in the Business Update released to stakeholders on 31 October 2012 
and the Cautionary included in this reviewed interim results announcement, 
the companies within the Construction Products Africa operating platform are 
considered to be non-core. These businesses have accordingly been classified 
as discontinued operations. The financial results of the previous 
corresponding reporting period have been restated on the same basis. 

For the six months ended 31 December 2012, the Group generated revenue of 
R16,3 billion (December 2011: R15,0 billion) and reported attributable 
earnings of R262 million (2011: R528 million attributable loss). Diluted 
earnings per share were 64 cents (December 2011: 161 cents diluted loss per 
share) and diluted headline earnings per share were 69 cents (December 2011: 
190 cents diluted headline loss per share).

Further as was stated in the Business Update of 31 October 2012, the impact 
of the industrial and labour unrest on the Groups profit, was approximately 
R200 million. 

R500 million long-term debt was repaid in September 2012. At December 2012 
the Groups net cash position was R1,1 billion (December 2011: R21 million 
net debt).

The Group is pleased to report that its order book was maintained at 
R48,3 billion, with the offshore component increasing to 60% (December 2011: 
40%).  The average potential margin imbedded in the order book is within the 
Groups strategic range of 5,0% to 7,5%. 
  
Health and Safety

Murray & Roberts achieved a record low lost time injury frequency rate 
(LTIFR) of 0.85 (December 2011: 1.04) for the first six months of the 2013 
financial year.  No fatality was recorded during the half year reporting 
period. This outcome was made possible by the continuous commitment to 
safety by all Murray & Roberts employees and subcontractors.

The Stop.Think brand has been enhanced to include the new dimension of 
Act.24/7 and the new brand Stop.Think.Act.24/7 was launched on 20 November 
2012 to 200 Murray & Roberts senior executives. Act emphasises the 
importance of taking action to correct unsafe conditions and behaviours as 
well as recognising positive behaviour whilst 24/7 highlights the need of 
safety awareness at all times whether at work or at home. This initiative 
aims to establish consistency in leadership interactions on construction 
sites across the Group, to increase leadership visibility and to actively 
build a stronger safety culture.

Update on the Groups Major Claim Processes

The uncertified revenue moderately reduced to R1,8 billion (June 2012: 
R2,0 billion). The Groups uncertified revenue previously recognised on 
challenging projects is considerably lower than the estimated value of its 
claims. These claims have been taken to book in compliance with IAS11 
(Construction Contracts) following engagement with independent legal, 
commercial and claims consultants.

  - Gautrain Rapid Rail link (Gautrain)  The hearing for the arbitration 
of the major delay and disruption claim against the Gauteng Provincial 
Government has been scheduled to commence in May 2014. 
It is expected that a ruling on the principle of the claim will be made by 
December 2014 and on quantum by December 2015. The arbitration regarding the 
dispute on the water ingress matter on the Rosebank Station to Park Station 
section of the tunnel commenced in September 2012 and will continue in March 
2013, with a ruling expected by June 2013. The Gautrain continues to operate 
safely.  

  - Gorgon Pioneer Materials Offloading Facility (GPMOF)  Following a 
successful ruling on the principle of the design change claim, the resulting 
arbitration process on the quantum of this claim has been delayed. The 
arbitrator delivered an interim award on 19 December 2012 that the quantum 
should include all related costs incurred and the client is challenging this 
ruling in the Australian Supreme Court. Accordingly, it is unlikely that 
this design change quantum claim will be resolved in the current financial 
year. The commercial process on the balance of the claims is now only 
expected to be resolved during financial year 2014.

  - Dubai International Airport  According to legal advice on the UAE 
Supreme Courts ruling of 19 February 2013, the Dubai Government is the 
respondent to the claim and the arbitration panel has the jurisdiction to 
decide all matters referred to it for adjudication. The arbitration is 
expected to be concluded by December 2013.  

The Board and management remain committed to the resolution of all 
contractual disputes and the collection of proceeds from claim settlements, 
while recognising that this will be a challenging and protracted process.

Operating Performance**

Construction Africa and Middle East: 

               Construction                          Middle                 
                     Africa          Marine            East           Total 
R millions     2012    2011    2012    2011    2012    2011    2012    2011 
Revenue       2 993   2 892     184     559     286     928   3 463   4 379 
Operating 
profit/
(loss)           34      81      45    (621)    (46)   (239)     33    (779)
Margin (%)        1%      3%     24%   -111%    -16%    -26%      1%    -18%
LTIFR 
(Fatalities) 0.86(0)  0.83(0)   0(0)    0(0) 0.35(0) 0.51(0) 0.68(0) 0.63(0)
Order book    6 886    8 612    314     449   1 447   1 605   8 647  10 666 

Revenues decreased 21% to R3,5 billion (2011: R4,4 billion) with an 
operating profit of R33 million (2011: R779 million operating loss). The 
order book decreased to R8,6 billion (June 2012: R9,0 billion). 
Notwithstanding the challenging South African industrial relations 
environment, in particular as experienced at the Medupi power station 
contract, the platform returned a modest profit.

The Group looks forward to participating in Governments plans for new major 
project infrastructure spend in the construction sector. However, new major 
construction projects and investment in infrastructure development (roads, 
dams, power stations, railway lines, sea ports, schools and hospitals) have 
been slow to come to market and should remain an imperative.

The Company has curtailed its activities in the Middle East and is focussing 
on closing out issues on legacy projects. The Group currently has one 
project under construction in the Middle East and will pursue new 
opportunities on a selective basis. 

The platform will continue to focus on infrastructure opportunities in South 
Africa and the rest of Africa and remains well positioned to participate in 
projects that come to market.

Construction Global Underground Mining:  

                     Africa     Australasia    The Americas           Total 
R millions     2012    2011    2012    2011    2012    2011    2012    2011 
Revenue       1 614   2 725     552     454   1 853   1 517   4 019   4 696 
Operating 
(loss)/
profit         (137)    142      51      48     172     145      86     335 
Margin (%)       -9%      5%      9%     11%      9%     10%      2%      7%
LTIFR 
(Fatalities) 2.26(0) 2.24(2)    0(0)    1(0) 1.11(0) 1.24(1) 1.95(0) 2.15(3)
Order book    4 621  11 052     831   1 164   3 619   3 862   9 071  16 078 

Revenues decreased 14% to R4,0 billion (2011: R4,7 billion) while operating 
profit declined to R86 million (2011: R335 million). The order book 
increased to R9,1 billion (June 2012: R8,8 billion) despite cancellations on 
tendered as well as awarded contracts. The improvement in the order book is 
primarily due to new project awards. 

The South African operation was impacted by the loss of the Aquarius 
contract, labour unrest, postponement of two large projects, as well as two 
loss-making contracts. Although the international mining operations in 
Canada and Australia are experiencing more favourable market conditions, 
they also suffered the consequences of project cancellations and 
postponements. The international businesses continue to perform well with 
margins in excess of the Groups strategic target range. 

Construction Global Underground Mining will continue to pursue growth 
opportunities globally, which may include acquisitions in the medium term. 

Construction Australasia Oil & Gas and Minerals6: 
 
                                            Commis- Fabrication,
                                            sioning   Corporate
                                          and Asset   overheads
             Engineering      Projects      Support   and Other           Total
R millions    2012  2011   2012   2011  2012   2011  2012  2011    2012    2011 
Revenue      2 070 1 253  3 131  2 028   516    216   597   121   6 314   3 618 
Operating 
profit/
(loss)         298   170    216    107    39      8  (219) (203)    334      82 
Margin (%)      14%   14%     7%     5%    8%     4%  -37% -168%      5%      2%
LTIFR 
(Fatalities)                                                     0.09(0) 0.28(0)
Order book                                                       22 017  15 353
6 Excluding Forge. Forge is an associate and is equity accounted at 36% 
(December 2011:33%) within Cloughs consolidated results. 

Murray & Roberts has a 62% share in Clough, and Clough has a 36% share in 
Forge. Both Clough and Forge are listed companies on the Australian Stock 
Exchange.

Clough performed exceptionally well in favourable market conditions. Revenue 
and operating profit, excluding Forge, increased to R6,3 billion 
(2011: R3,6 billion) and R334 million (2011: R82 million) respectively, 
aided by a weakening Rand exchange rate. The order book increased to 
R22,0 billion (June 2012: R19,4 billion). As at 31 December 2012, Cloughs 
order book was 77% cost reimbursable and 94% leveraged to the LNG sector. 

Clough recently announced the acquisition of e2o (Proprietary) Limited, a 
leading provider of specialised commissioning, completion and hazardous area 
inspection services to the energy and resources sectors. 

Forge Limited returned a solid financial performance with both revenues and 
operating profit increasing by 151% and 102% respectively. 

Full details of the Clough and Forge financial results for the interim 
period and their prospects have been published on their websites 
www.clough.com.au and www.forgegroup.com.au respectively.  

Engineering Africa: 

                                 Power 
                            Programme7      Engineering8              Total 
R millions               2012     2011     2012     2011      2012     2011 
Revenue                 2 010    1 876      538      446     2 548    2 322 
Operating 
profit/(loss)              96      102      (61)       1        35      103 
Margin (%)                  5%       5%     -11%       -         1%       4%
LTIFR (Fatalities)     0.77(0)  0.86(0)  0.50(0)  0.58(0)   0.61(0)  0.80(0)
Order book              7 093   12 822      627      791     7 720   13 613 

7 Murray & Roberts Projects power programme contracts and Genrec. 
8 Includes Wade Walker, Concor Engineering and Murray & Roberts Projects 
non-power programme projects. 

Revenues increased to R2,5 billion (2011: R2,3 billion), whilst operating 
profit reduced to R35 million (2011: R103 million). The order book increased 
to R7,7 billion (June 2012: R6,8 billion). The improvement in the order book 
is primarily due to order book movements on the power programme. 

Murray & Roberts Projects and Genrec continue to perform well and in line 
with expectations on the Medupi and Kusile power projects. However, poor 
performance was recorded in both Concor Engineering and Wade Walker.  
	
Engineering Africa will maintain its focus on engineering and construction 
services in Sub-Saharan Africa, whilst positioning itself for new 
opportunities in the energy, water, minerals and the oil & gas market 
segments. This operating platform will establish a position in the water 
sector by developing this capacity in-house, rather than by acquisition as 
was previously contemplated. 

Disposal of non-core assets:

            Crane Hire                     Clough
              Services         Steel       Marine     Proper-    Construc-
              (Johnson   Reinforcing   Services &        ties         tion
               Arabia)      Products   Properties          SA    Products9         Total 
R millions  2012  2011   2012   2011  2012   2011  2012  2011  2012   2011   2012   2011
Revenue        -   114    471    655    27    377    2    5   1 928  1 715  2 428  2 866 
Operating
profit/
(loss)         -     2     16    (24)   (2)   (19)   2   47     109    105    125    111 
Trading        -     2     16    (24)   (2)   (19)   2   47     129    105    145    111 
Asset 
Impairment     -     -      -      -     -      -    -    -     (20)     -    (20)     - 
Margin (%)     -     2%     3%    -4%   -7%    -5% 100% 940%      6%     6%     5%     4%
Order book     -     -      -      -     -      -    -    -     863  1 193    863  1 193 
9 Includes Hall Longmore, Rocla, Much Asphalt, Ocon, Technicrete and UCW.

On 29 January 2013 the Group announced the disposal of Union Carriage & 
Wagon Company (UCW) to the CTE Consortium, a consortium including CTE 
Investments (Proprietary) Limited and the Industrial Development 
Corporation. The Group has realised fair value in the sale price, which was 
in excess of the carrying value. 

The disposal of the Steel Business became unconditional following approval 
received from the Competition Commission (Commission). 

All businesses within the Construction Products Africa operating platform, 
other than Hall Longmore, are performing in line with expectations. 

Competition Commission 

Press articles with regard to collusion in the construction industry were 
recently published and this matter was subsequently extensively reported on 
in various media. This is not the first time that collusive activity has 
been reported on and it has been a matter of investigation by the Commission 
for a number of years. 

Murray & Roberts was one of the first companies in the sector to bring 
conduct of this nature to the attention of the Commission and has engaged 
in extensive internal investigations, with the assistance of independent 
external legal advisers, to uncover the conduct.  We are confident that any 
historical conduct of this nature within the Group has been rooted out.

Murray & Roberts supports free and competitive trading in every jurisdiction 
in which we operate and has zero tolerance for any anti-competitive or 
corrupt behaviour. The Group has implemented specific actions to prevent 
transgressions in the future. These include the enforcement of our Statement 
of Business Principles, annual compliance declarations by all executives, 
compliance declarations with each tender submitted and ongoing compliance 
training. 

The Commission has engaged with various players in the construction industry 
on applications submitted through the 2011 Fast-Track process. The Group has 
participated in this process but has not yet reached finality with the 
Commission regarding the potential penalty relating to historic anti-
competitive practices. The Board is of the view that it has adequately 
provided for potential penalties. 

Dividend

The Board has resolved not to declare a dividend for the half-year. 
Shareholders will be updated on the prospects of a dividend for the full 
financial year at the time that the annual results are announced in August 
2013.

Board of Directors

During the period, Mr. Tony Routledge, Dr. Namane Magau and Dr. Sibusiso 
Sibisi retired from the Board. Our sincere thanks are extended to all of 
these directors for their commitment and contribution. Ms.Thenjiwe Chikane 
joined the Board in June 2012 as a non-executive director and a member of 
the Audit & Sustainability Committee and Risk Management Committee.

Effective 1 March 2013, Adv. Mahlape Sello will replace Mr. Roy Andersen as 
non-executive chairman, following his planned retirement, as announced in 
August 2012. The Board would like to thank Mr. Andersen for his valued 
counsel and wish him well in his future endeavours.  

Prospects Statement

The Groups vision is to be a leading diversified engineering and 
construction Group in the global underground mining market and selected 
emerging markets in the natural resources and infrastructure sectors by 
2020. These market sectors present the best future growth potential for the 
Group.

Implementation of Murray & Roberts Growth strategy will better position the 
Group to sustain growth and profitability in the medium to long term.  The 
Board is of the view that the improvement in the earnings trend will 
continue. 

The information on which this prospects statement is based has not been 
reviewed or reported on by the Groups external auditors.

Cautionary Announcement

Shareholders are advised that the Company has entered into advanced 
discussions with potential buyers with regard to the proposed disposal of 
the companies and underlying assets held in the Construction Products Africa 
platform. 

Accordingly, shareholders are advised to exercise caution when dealing in 
the Companys securities until a detailed announcement including/or a 
withdrawal of cautionary announcement is published.


On behalf of the directors

Roy Andersen 
Chairman of the Board 

Henry Laas 
Group Chief Executive 

Cobus Bester 
Group Financial Director

Bedfordview
28 February 2012

Registered office:
Douglas Roberts Centre,
22 Skeen Boulevard,
Bedfordview 2007

PO Box 1000
Bedfordview 2008

Registrar:
Link Market Services South Africa Proprietary Limited
13th floor, Rennie House,
19 Ameshoff Street, 
Johannesburg 2001

PO Box 4844
Johannesburg 2000

Sponsor:
Deutsche Securities (SA) (Proprietary) Limited

Directors:
RC Andersen* (Chairman)
HJ Laas (Group Chief Executive)
DD Barber*
AJ Bester
TCP Chikane*
O Fenn1
JM McMahon1*
WA Nairn*
M Sello*
RT Vice*

1British *Non-executive

Secretary:
E Joubert

website: www.murrob.com 
.mobi site: http://murrob.mobi
e-mail: clientservice@murrob.com 


** The operating performance information disclosed has been extracted from 
the Groups operational reporting systems. The LTIFR information has not 
been subject to a review by the Groups auditors. The Corporate & Properties 
segment is excluded from the operational analysis. Unless otherwise noted, 
all comparisons are to the Groups performance as at and for the six month 
period ended 31 December 2011.

Disclaimer

This announcement includes certain various forward-looking statements 
within the meaning of Section 27A of the US Securities Act 10 1933 and 
Section 21 E of the Securities Exchange Act of 1934 that reflect the current 
views or expectations of the Board with respect to future events and 
financial and operational performance. All statements other than statements 
of historical fact are, or may be deemed to be, forward-looking statements, 
including, without limitation, those concerning: the Groups strategy; the 
economic outlook for the industry; use of the proceeds of the rights offer; 
and the Groups liquidity and capital resources and expenditure. These 
forward-looking statements speak only as of the date of this announcement 
and are not based on historical facts, but rather reflect the Groups 
current expectations concerning future results and events and generally may 
be identified by the use of forward-looking words or phrases such as 
believe, expect, anticipate, intend, should, planned, may, 
potential or similar words and phrases. The Group undertakes no obligation 
to update publicly or release any revisions to these forward looking 
statements to reflect events or circumstances after the date of this 
announcement or to reflect the occurrence of any unexpected events. Neither 
the content of the Groups website, Cloughs website, Forges website nor 
any website accessible by hyperlinks on the Groups website is incorporated 
in, or forms part of, this announcement.


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