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MURRAY & ROBERTS HOLDINGS LIMITED - Updated trading statement for the financial year ended 30 June 2017

Release Date: 17/08/2017 13:00
Code(s): MUR     PDF:  
Wrap Text
Updated trading statement for the financial year ended 30 June 2017

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 the “Company” or “Group”)


UPDATED TRADING STATEMENT FOR THE FINANCIAL YEAR ENDED 30 JUNE
2017

Introduction

Shareholders are referred to the initial trading statement published on the Stock
Exchange News Service (“SENS”) of the JSE Limited (“JSE”) on 8 May 2017, wherein the
Company stated that earnings for the financial year ended 30 June 2017 (“FY2017”) were
expected to decline when compared to FY2016, mainly due to persistent low energy
prices and difficult trading conditions. Shareholders were further advised that the results
for FY2017 will also be impacted by additional costs, not accounted for in the interim
financial results, associated with the completion of the remaining four building projects in
the Middle East, scheduled to be completed in FY2018.

Related to this update, shareholders are also referred to the Group’s Business Platform
Presentations – 26 June 2017, with further guidance on the Middle East, available on the
Group’s website www.murrob.com on the home page.

The business in the Middle East

The Group took a strategic decision to exit the civil engineering and building market and
to sell its Infrastructure & Building businesses. As this sale excluded the building business
in the Middle East, the board of directors decided to close this business. In terms of the
International Financial Reporting Standards, the business in the Middle East is to be
abandoned and is not yet a discontinued operation. Its financial results are hence
reported as continuing operations.

As the business in the Middle East recorded a substantial loss of approximately R570
million for the year under review, Group revenue, earnings before interest & tax (“EBIT”),
and headline earnings per share (“HEPS”) and earnings per share (“EPS”) for FY2017 will
be reported as ‘including and excluding’ the Middle East. This is to enable a clear
understanding of the negative impact of the Middle East business on the continuing
operations’ earnings profile.

Updated trading statement

In accordance with paragraph 3.4(b) of the Listings Requirements of the JSE, a company
is required to publish a trading statement as soon as it is satisfied, that a reasonable
degree of certainty exists, that the financial results for the next period to be reported on
are likely to vary by at least 20% from the previous corresponding period. Accordingly,
shareholders are advised that:
Results from continuing operations:

DILUTED                                    HEPS continuing (cents)      EPS continuing (cents)
Actual - full year to 30 June 2016 *
Excluding Middle East                                 197                         234
Including Middle East                                 178                         215
Range - full year to 30 June 2017          Cents            %          Cents            %
Excluding Middle East
 - low                                      206              5%         209           -11%
 - high                                     216             10%         219            -6%

Including Middle East
 - low                                      66           -63%            69           -68%
 - high                                     76           -57%            79           -63%


BASIC                                      HEPS continuing (cents)      EPS continuing (cents)
Actual - full year to 30 June 2016 *
Excluding Middle East                                 204                         242
Including Middle East                                 185                         223
Range - full year to 30 June 2017          Cents            %          Cents            %
Excluding Middle East
 - low                                      210             3%          213           -12%
 - high                                     220             8%          223            -8%

Including Middle East
 - low                                      68           -63%            71           -68%
 - high                                     78           -58%            81           -64%

* A 38% investment in Forum SA Trading 284 (Pty) Ltd (Property development) was not included in
 the sale of the Southern African Infrastructure and Building operations and has therefore been
 reclassified from discontinued operations in the prior year and included as income from continuing
 operations for all periods presented. Impact of the restatement on EPS for continuing operations is
 an increase of 3 cents (Diluted and Basic) and on HEPS from continuing operations an increase of 3
 and 4 cents respectively (Diluted and Basic).
Results from continuing and discontinued operations:

                                                 HEPS                       EPS
DILUTED                                       continuing &              continuing &
                                          discontinued (cents)      discontinued (cents)
Actual - full year to 30 June 2016                153                       182

Range - full year to 30 June 2017       Cents          %          Cents          %
- low                                    21          -86%           7          -96%
- high                                   31          -80%          17          -91%

                                                 HEPS                       EPS
BASIC                                         continuing &              continuing &
                                          discontinued (cents)      discontinued (cents)
Actual - full year to 30 June 2016                158                       189

Range - full year to 30 June 2017       Cents          %          Cents          %
- low                                    21          -87%           7          -96%
- high                                   31          -80%          17          -91%

Notwithstanding persistently trying market conditions and the possibility for potential
future losses from the Group’s remaining non-core businesses, the business in the Middle
East and Genrec, we expect FY2018 to be the start of a new EBIT growth period,
supported by analyst and third party research citing the current turn in the metals and
minerals cycle. Based on the same research, the oil and gas cycle is expected to turn in
the near term.

Shareholders are advised that the financial information on which this trading statement is
based has not been reviewed and reported on by the Group’s external auditors.

Cash Position

As at 30 June 2017, the Group expects to report a healthy statement of financial position
with cash, net of debt, of between R1,7 billion and R1,9 billion (30 June 2016: R1,8
billion). This strong cash position and the expectation for improved financial performance
will support the Group’s organic and acquisitive growth plans.


DATE OF ANNUAL FINANCIAL RESULTS & PRESENTATIONS

Murray & Roberts intends to publish its annual financial results for the year ended 30
June 2017 on Wednesday, 23 August 2017 at or around 17:00 (CAT) on SENS and will
be hosting an investor presentation in Johannesburg on Thursday, 24 August 2017. In
addition to the physical presentation, the Company will provide the following stakeholder
services on Thursday, 24 August 2017 at 12:00 (CAT):

   1. Live Call Access

        To pre-register for the call, please email ed.jardim@murrob.com for the
        registration link.

   2. Live Webcast

        A live webcast will also be available on www.murrob.com, on the ‘Full Year
        Results’ link on the home page on Thursday, 24 August 2017 from 11:50 (CAT).

Bedfordview
17 August 2017

Sponsor: Deutsche Securities (SA) Proprietary Limited

Date: 17/08/2017 01:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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