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RAUBEX GROUP LIMITED - Voluntary Trading Statement in respect of the six month period ended 31 August 2015

Release Date: 26/10/2015 08:00
Code(s): RBX     PDF:  
Wrap Text
Voluntary Trading Statement in respect of the six month period ended 31 August 2015

RAUBEX GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2006/023666/06)
JSE Share code: RBX
ISIN: ZAE000093183
(“Raubex” or “the Company”)


VOLUNTARY TRADING STATEMENT IN RESPECT OF THE SIX MONTH PERIOD ENDED 31
AUGUST 2015

Shareholders are advised that Raubex expects its earnings per share and headline earnings per share
for the six month period ended 31 August 2015 to be between 0% and 10% higher compared to the
corresponding period to 31 August 2014. This translates in earnings per share ranging between 103,5
and 113,9 cents per share (H1 2015: 103,5 cents per share) and headline earnings per share ranging
between 101,6 and 111,8 cents per share (H1 2015: 101,6 cents per share).

The Materials Division has continued to experience favourable operating conditions during the period
with the acquisitions concluded in the prior year all bedded down well and making positive
contributions to earnings. The outlook for commercial quarry operations and material handling and
processing operations remains positive.

In the Road Construction Division, the volume of work out on tender has been healthy and although
conditions remain competitive in the sector, the Group has been able to maintain its order book at
suitable levels while following its strategy of selective order book replacement at better margins.

The Road Surfacing and Rehabilitation segment, and in particular the asphalt production operations,
have experienced a challenging period with results negatively affected by a severe bitumen supply
shortage due to unplanned refinery shut downs and aggregate supply issues, both of which have
been resolved subsequently.

The Road Construction and Earthworks segment saw margins improving during the period due to a
better quality order book and teams continuing to focus on the efficient work execution.

In Zambia, the two link 8000 contracts are progressing well operationally, however the significant
devaluation of the Zambian Kwacha during September 2015 will impact the future profitability of
these contracts should the Zambian Kwacha remain at current levels. In light of this, the Group has
had constructive engagements with the Client (the Zambia Roads Development Agency) and is in the
process of negotiating measures to mitigate the exchange rate risk and support the successful
completion of the contracts. These negotiations are ongoing and the Group will be able to provide a
more detailed update with release of its interim results in November.

The Infrastructure segment experienced a slow start to the year, due mainly to the effect of the lower
commodity prices on the capital expenditure plans of the Group’s mining clients and also the timing of
the execution of solar energy projects. With site establishment on secured solar work completed
towards the end of the first half, the Group is expecting a stronger second half performance from this
division as these projects are executed. Prospects for future work in the solar energy sector are
encouraging.

The financial information on which this trading statement is based has not been reviewed or reported
on by the Company’s auditors.

The release of the results for the period ended 31 August 2015 is anticipated to be published on or
about 9 November 2015.




Centurion
26 October 2015


Sponsor
Investec Bank Limited

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