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MURRAY & ROBERTS HOLDINGS LIMITED - Provisional Reporting for the 12 months ended 30 June 2017

Release Date: 23/08/2017 16:39
Code(s): MUR     PDF:  
Wrap Text
Provisional Reporting for the 12 months 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 "Group" or "Company")

MURRAY & ROBERTS PROVISIONAL REPORT
for the 12 months ended 30 June 2017

OIL & GAS        UNDERGROUND MINING      POWER & WATER

SALIENT FEATURES
Financial results:
- Revenue from continuing operations, excluding the Middle East, decreased by 15% to R20,8 billion                  
- Diluted continuing HEPS, excluding the Middle East, increased by 8% to 212 cents                   
- Attributable earnings of R48 million (FY2016: R753 million)                              
- Cash, net of debt, maintained at R1,8 billion                          
- Dividend maintained at 45 cents per ordinary share           
- Order book for continuing operations of R26,9 billion in a tough environment    

Attributable earnings were impacted by the following exceptional items:
- R570 million loss incurred in the Middle East   
- R160 million profit realised in Bombela Civils Joint-Venture, following settlement of Gautrain claim                                                              
- R170 million net present value charge of the cash contribution over 12 years in terms of the 
  Voluntary Rebuilding Programme with the South African Government    

- Record-low lost time injury frequency rate of 0,52 (FY2016: 0,68). Regrettably, one fatal 
  incident was suffered 
- Settlement of all Gautrain development period disputes in December 2016
- Sale of Southern African Infrastructure & Building businesses concluded with effect from 
  1 April 2017
- Transfer of Company's sub-sector listing on the JSE from Heavy Construction to Diversified 
  Industrials in March 2017

STAKEHOLDER REPORT - FOR THE YEAR ENDED 30 JUNE 2017#
POSITIONED FOR GROWTH AND VALUE CREATION
Murray & Roberts has transformed itself into a multinational engineering and construction group, with a focused
portfolio of businesses providing services primarily in the natural resources market sectors of underground
mining, oil & gas, and power & water. The significant reshaping and alignment of the organisation is the most 
evident feature of the progress we have made over the past few years to redirect the strategic focus of the Group. 

The Group has largely achieved the business portfolio optimisation envisaged in the first phase of its New Strategic
Future plan. Closing the business in the Middle East after completing the remaining projects there, which is expected 
to be achieved by the end of FY2018, and concluding the sale of Genrec, which is strategically non-core, are the last
remaining steps in this regard. The financial year to 30 June 2018 will essentially be the first year as a 
fundamentally reshaped Murray & Roberts.

Underpinning the Group's strong year-end cash position, after several years of difficult trading conditions, is the
work done to strengthen the Group's statement of financial position. This has supported the Group's resilience to the
commodity down-cycle and the collapse in the oil price in November 2014, and simultaneously enhanced its ability to 
create value for shareholders.

FINANCIAL REPORT
Financial results
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 ("the
Board”) decided to close this business. In terms of 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 R570 million for the year under review, Group
revenue, earnings before interest and tax ("EBIT"), headline earnings and earnings per share ("HEPS") and earnings 
per share for FY2017 is 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.

It is anticipated that future losses in the Middle East will be limited to a reduced overhead cost and legal fees
associated with pursuing the Dubai Airport claim, as all known project losses have been accounted for in FY2017.

The Group reported revenue from continuing operations, excluding the Middle East, of R20,8 billion 
(FY2016: R24,4 billion), or R21,4 billion (FY2016: R26,1 billion) including the Middle East. Attributable 
earnings were R48 million (FY2016: R753 million). Diluted continuing HEPS, excluding the Middle East, 
increased to 212 cents (FY2016: 197 cents), or decreased to 72 cents (FY2016: 178 cents) including the 
Middle East. The Group maintained its strong cash position with cash, net of debt, of R1,8 billion 
(30 June 2016: R1,8 billion). 
Attributable earnings were impacted by the following exceptional items:
- R570 million loss incurred in the Middle East, recorded as part of continuing operations;
- R160 million profit realised in Bombela Civils Joint-Venture, following settlement of Gautrain claim; and                                                             
- R170 million net present value charge of the cash contribution over 12 years in terms of the 
  Voluntary Rebuilding Programme with the South African Government.

Capital expenditure for the year was R564 million (FY2016: R431 million) of which R405 million (FY2016: R332 million)
was for expansion and R159 million (FY2016: R99 million) for replacement. The capital expenditure was largely incurred
in the Underground Mining platform.

The order book for continuing operations reduced marginally to R26,9 billion (30 June 2016: R28,7 billion).

Dividend
The Board resolved to maintain a gross annual dividend of 45 cents per ordinary share for FY2017. The dividend will be 
subject to the dividend tax rate of 20%, which will result in a net dividend of 36 cents per share to those shareholders 
who are not exempt from paying dividends tax. The dividend has been declared from income reserves. 

Notwithstanding the losses incurred in the Middle East, the Board took into consideration the Group's strong cash 
position, partly as a result of the Gautrain settlement, as well as the view that FY2018 will be the start of a new 
EBIT growth period, supported by analyst and third-party research citing mainly the current turn in the metals and 
minerals cycle.

The number of shares in issue as at the date of this declaration is 444 736 118 and the Company's tax reference number
is 9000203712.

The relevant dates are:
Event                                                  Date                         
Last day to trade (cum-dividend)                       Tuesday, 3 October 2017      
Shares to commence trading (ex-dividend)               Wednesday, 4 October 2017    
Record date (date shareholders recorded in books)      Friday, 6 October 2017       
Payment date                                           Monday, 9 October 2017       

No share certificates may be dematerialised or rematerialised between Wednesday, 4 October 2017 and 
Friday, 6 October 2017, both dates inclusive.

On Monday, 9 October 2017, the dividend will be electronically transferred to the bank accounts of all certificated
shareholders where this facility is available. No dividend will be paid to shareholders who have not provided
their banking details to the transfer secretaries: Link Market Services. Accordingly, the cash dividend will remain 
unpaid until such time as the non-compliant shareholder has provided relevant banking details to the transfer 
secretary. No interest will be paid for unpaid dividends.

OPERATIONAL REPORT
Order Book, Near Orders and Project Pipeline
The Group's order book and project pipeline is presented in the table below. 

                                                                                Pipeline                                                      
R billions                          Order book      Near orders      Category 1      Category 2      Category 3    
Oil & Gas                                  5,2                -            18,7            14,8           494,9    
Underground mining                        17,5              6,3            17,5            27,6            20,2    
Power & Water                              3,7              0,7             1,2            12,6            24,6    
Middle East*                               0,5                -               -               -               -    
Continuing operations totals              26,9              7,0            37,4            55,0           539,7    
Discontinued operations totals             0,1                -             1,0             6,5               -    
30 June 2017 totals**                     27,0              7,0            38,4            61,5           539,7    
30 June 2016 totals**                     33,4             10,6            40,0           101,2           505,5    

- Near orders: Tenders where the Group is the preferred bidder and final award is subject to financial/commercial
  close - there is more than a 95% chance that these orders will be secured
- Category 1: Tenders the Group is currently working on (excluding near orders) - projects developed by clients 
  to the stage where firm bids are being obtained - chance of being secured as firm orders a function of final 
  client approval as well as bid strike rate
- Category 2: Budgets, feasibilities and prequalification the Group is currently working on - project planning
  underway, not yet at a stage where projects are ready for tender
- Category 3: Opportunities which are being tracked and are expected to come to the market in the next 36 months 
  - identified opportunities that are likely to be implemented, but still in pre-feasibility stage

*  Closing the business in the Middle East after completing the remaining projects there, which is expected to be
   achieved by the end of FY2018.
** Including continuing and discontinued operations.

Oil & Gas Platform
                                                                                     Corporate
                                    Construction      Global        Commissioning    overheads
R millions          Engineering    & Fabrication      Marine       & Brownfields     and other          Total                  
June               2017    2016     2017   2016    2017   2016      2017    2016    2017   2016     2017     2016    
Revenue           1 297   2 707       30     87     425    936     4 862   7 016     100    466    6 714   11 212    
Operating                                                                                                
profit/(loss)        28     329     (52)   (16)      71     (4)      576     738    (406)  (522)     217      525    
Margin (%)           2%     12%    (173%)  (18%)    17%      -       12%     11%       -      -       3%       5%    
Order book          492   1 574    1 070      -       -    341     3 589   4 514       -      -    5 151    6 429    
Segment assets                                                                                     2 528    2 919    
Segment                                                                                          
liabilities                                                                                        1 978    2 072    
People                                                                                             1 895    1 464    
LTIFR (fatalities)                                                                                0.25(0)  0.18(0)    
                                                                                   
As was expected, Clough recorded reduced revenues and operating profit in FY2017. The major greenfields LNG 
projects in Australia into which Clough contracted reached completion and strategies are in place to secure 
work on brownfields LNG projects, operations & maintenance works, and public infrastructure projects.

The platform's composition of earnings is changing rapidly and currently excludes large contributions from
construction work, with income from commissioning work on LNG projects dominating. In response to prevailing 
market conditions, the platform continued to reduce its cost base to preserve margins and be competitive in 
pursuing smaller brownfields and maintenance project opportunities. 

Revenue reduced to R6,7 billion (FY2016: R11,2 billion) and operating profit to R217 million (FY2016: R525 million)
reflecting lower margins on a reduced revenue base. The order book decreased to R5,2 billion (30 June 2016: R6,4 billion)
as all large construction orders have been delivered and the order book now largely comprises smaller value and shorter
duration orders.

In Australia, the Wheatstone Hook-Up and Commissioning project performed well and strong operational performance has
been rewarded with significant scope growth. This project was a major contributor to Clough's earnings during the
financial year and is nearing completion. Project resources were mobilised to support hook-up and pre-commissioning 
work for INPEX Corporation on its offshore Ichthys LNG project, which will largely replace Wheatstone in terms of 
project income. Clough AMEC secured its first onshore petrochemical maintenance contract in Australia, a 
five-year contract, with an option to extend for a further five years, to provide maintenance services to 
Norwegian company Yara International. 

Meaningful earnings growth from this current low base is only expected in the medium term, as global energy producers'
confidence returns and they start investing in new projects. Brownfields operations and maintenance opportunities are
expected to be the main source of earnings from the Australian region for the next few years. The first new major
greenfields opportunities are expected to be in Papua New Guinea, as energy producers are progressing work associated 
with new LNG facilities, to be ready for production by 2022. 

Complementary markets such as Australia's mining and infrastructure markets, which have historically been serviced by
Clough, present significant opportunities. East coast Australian state governments, particularly New South Wales, are
developing many large infrastructure projects. Clough is well positioned to pursue selected opportunities and has
developed partnering strategies for delivering these projects.

The platform's international operations are relatively small but continue to perform to management's expectations. 
As part of its geographic expansion plans, Clough is actively pursuing a potential acquisition in the USA, as this 
is a growth market that presents new opportunity for the Oil & Gas platform.

Underground Mining Platform

R millions                     Africa              Australasia           The Americas              Total                 
June                      2017      2016         2017      2016         2017      2016         2017      2016    
Revenue                  3 565     3 640        1 727     1 392        2 754     3 756        8 046     8 788    
Operating profit           124        86          217       125          123       295          464       506    
Margin (%)                  3%        2%          13%        9%           4%        8%           6%        6%    
Order book              11 021     9 731        3 117     1 924        3 368     2 603       17 506    14 258    
Segment assets           1 139       955          982       809        1 494     1 867        3 615     3 631    
Segment liabilities      1 093       944          377       205          439       724        1 909     1 873    
People                   5 616     5 407        1 008       919          826     1 048        7 450     7 374    
LTIFR (fatalities)      1.15(0)   2.39(1)      0.96(0)   0.51(0)      1.97(0)   2.08(0)      1.23(0)   2.11(1)    
                                                       
The Underground Mining platform recorded a strong financial performance, against the background of mining companies'
continued focus on preserving capital, which limited the number of project opportunities associated with new mines. 
The platform's success in securing projects associated with mining companies' ongoing infrastructure replacement and
development spend (‘stay-in-business capital') underpinned its performance.

Revenues decreased to R8,0 billion (FY2016: R8,8 billion) and operating profit to R464 million (FY2016: R506 million).
The order book is R17,5 billion (30 June 2016: R14,3 billion). The order book includes R4,8 billion for the Kalagadi
manganese project, which is expected to commence in September.

In South Africa, the De Beers Venetia project performed below expectation, affected by community unrest, Section 54
stoppages and low productivity. Various initiatives are underway to improve progress, specifically on the vertical 
shafts where the Canadian method of shaft sinking has proved challenging under South African conditions. The Booysendal 
project delivered a much improved performance compared to the prior year as production volumes exceeded target. 
Murray & Roberts Cementation was awarded Phase 1 of the project to develop the new Booysendal Central Mine. 

Murray & Roberts Cementation continued to progress its Africa strategy through its Kitwe office in Zambia. It
successfully completed the Bulk Air Cooler ventilation project at Mopani Copper's Synclinorium mine. The business 
continued to perform well on the shaft sinking and mine development projects at the Mufulira mine, with additional 
development work recently awarded. 

After several years of strong growth, the North American operations delivered a mixed set of results. Cementation
Canada and Cementation USA recorded reduced revenue and earnings as market conditions remain challenging. A limited 
number of larger projects are expected to come to market where prevailing market conditions are characterised by 
delays in or postponement of new projects.

RUC Cementation Mining had an excellent year. It exceeded expectations and achieved results well above the previous
financial year. The business significantly increased its order book due to the recent award of the Dacian Gold project,
the largest award in its history. Following good project delivery, scope growth on existing projects in Australia and
Indonesia, together with geographic diversification into new regions, such as Mongolia, contributed to this performance.
Earnings from raise boring activity was significantly up on the prior year with excellent fleet utilisation and a large
pipeline of significant near-term opportunities.

Various research reports indicate that the commodity cycle has bottomed out and demand for commodities is anticipated
to grow in the short term on the back of supply and demand dynamics. There is a large investment pipeline of underground
mining projects in countries and regions where the platform is established and it is well positioned to rise to any
upturn in the commodity cycle.

Power & Water Platform
                                                                                    Corporate
                                                                  Electrical &      overheads                               
R millions            Power2          Water        Oil & Gas     Instrumentation    and other         Total         
June                2017   2016    2017   2016    2017   2016      2017   2016     2017   2016     2017     2016    
Revenue            5 063  3 733      56     42     669    367       106    189       14    (55)   5 908    4 276    
Operating         
profit/(loss)        243    272     (20)    (9)      5    (18)       35     36      (92)  (254)     171       27    
Margin (%)            5%     7%    (36%)  (21%)     1%    (5%)      33%    19%        -      -       3%       1%    
Order book         3 198  6 326       -     25     483    283        26     47        -      2    3 707    6 683    
Segment assets                                                                                    1 527    1 468    
Segment           
liabilities                                                                                       1 341    1 284    
People                                                                                            6 936    5 354    
LTIFR (fatalities)                                                                               0.43(0)  0.70(0)    
2 Power programme contracts.                                                    

The platform's financial results for FY2017 continued to be underpinned by the boiler erection work on the 
mega power station projects at Medupi and Kusile, where Murray & Roberts Power & Energy ("MRPE") is the main 
boiler subcontractor to Mitsubishi Hitachi Power Systems Africa.

Revenues increased to R5,9 billion (FY2016: R4,3 billion) and operating profit to R171 million 
(FY2016: R27 million). The order book decreased to R3,7 billion (30 June 2016: R6,7 billion), reflecting 
the reducing order book value for Medupi and Kusile.

During the year, boiler construction at the Medupi and Kusile power stations advanced significantly. 
At Medupi, Units 5 and 4 were synchronised on a test basis to the grid and have joined Unit 6, which is 
now permanently synchronised to the grid. Unit 3 has been hydro tested and is ready for chemical clean. 
At Kusile, Unit 1 was successfully synchronised to the grid on a test basis in December 2016 and Unit 2 
has been hydro tested and is ready for chemical clean. Unit 3 has been successfully hydro tested.

Other significant work in the power sector carried out by MRPE during the year included the Morupule 
A power station refurbishment project in Botswana and the construction of two Wet Flue Gas Desulphurisation 
units at Kusile. Electrical and instrumentation services are being provided on projects in South Africa 
and Ghana. A new service offering in this sector is high voltage transmission and distribution infrastructure, 
which will be provided via a cooperation agreement with the Shanghai Electric Group.

MRPE engages in the complementary market sector of oil and gas in sub-Saharan Africa. The MRPE operation in 
Secunda, supporting Sasol, has been executing structural, mechanical, electrical, instrumentation and piping 
construction services, and was awarded the CTF East construction contract in May 2017. Successful shutdown work 
was executed during the year, with new shutdown work secured for FY2018. Murray & Roberts Ghana successfully 
executed the engineering, procurement and construction of a 13.5 million litre marine gas oil facility for 
GOIL in the Takoradi Port.

Murray & Roberts Water is a relatively new business, and its service offering includes desalination, innovative
municipal wastewater treatment technologies, industrial modular water treatment plants and acid mine drainage. 
Opportunity is expected to come from the wastewater treatment subsector as there is increasing environmental 
pressure to upgrade failing wastewater treatment plants and to reuse treated effluent, as well as the industrial 
sector as industry looks to water security through reuse and recycling to save water and reduce costs. The City 
of Cape Town launched its new water resilience plan in August 2017 and its capital expenditure and operating 
expenses are expected to be approximately R2 billion and R1,3 billion respectively over the next two financial years. 

Medupi and Kusile, once fully operational, will provide opportunity for maintenance services through MRPE's skilled
and experienced workforce that has worked on these projects for close to a decade. This capacity and capability is 
also transferable to South Africa's new build base-load coal Independent Power Producer projects such as the 
Thabametsi and Khanyisa projects, which have reached preferred bidder status. MRPE is engaged with the selected 
engineering, procurement and construction contractors on both projects.

The platform is committed to securing an order book to replace work on Medupi and Kusile, which will be completed 
in FY2019. However, competition in this market continues to be fierce. 

Gautrain-related businesses
The Group's Gautrain-related businesses include its investments in the Bombela Concession Company, Bombela Civils
Joint Venture and the Bombela Operating Company. The Bombela Concession Company continues to perform well and 
delivers meaningful value. 

All Gautrain development-period claims have been settled with the Gauteng Provincial Government. This was an
all-inclusive settlement arrangement and the settlement value achieved supported the revenue previously taken to 
account against these claims, net of the provision for potential future Gautrain tunnel water ingress work that 
could be written back on the basis of the settlement reached. In terms of this agreement no further work is 
required to be undertaken in the tunnel.  

R millions                    Bombela Investments          Middle East                Total                 
June                           2017         2016        2017         2016        2017         2016    
Revenue                         121          169         608        1 703         729        1 872    
Operating profit/(loss)         419           74        (568)         (68)       (149)           6    
Margin (%)                     346%          44%        (93%)         (4%)       (20%)           -    
Order book                        -           42         500        1 331         500        1 373    
Segment assets                1 643        1 553       1 124          249       2 767        3 628    
Segment liabilities             178          568       1 350           11       1 528        2 387    
People                           22           23       4 272        7 870       4 294        7 893    
LTIFR (fatalities)            0.0(0)       0.0(0)      0.0(0)      0.07(0)      0.0(0)      0.07(0)    

Abandoned Business - Middle East Entities
In line with the Group's strategy to exit the civil engineering and buildings market, the Board resolved to 
close the business in the Middle East. A substantial loss of R570 million was recorded in the year under 
review, associated with: an unfavourable arbitration ruling on the Zayed University project that was 
completed in 2011; losses on the remaining four building projects; and redundancy costs to be incurred as 
part of the business closure process. The remaining projects are scheduled to be completed by the end 
of FY2018. Close-out of the business in the Middle East continues to present major risk, but all known 
project losses have been fully provided for in FY2017. Costs during FY2018 should be limited to a 
significantly reduced overhead cost, and ongoing legal fees on the Dubai Airport dispute.  

Discontinued Operations
                                  I&B
                               Businesses           Clough             Genrec                                  
R millions                     and Other3         Properties         Engineering            Total               
June                         2017      2016      2017    2016       2017     2016       2017    2016    
Revenue                     3 364     4 369         7       1        303      288      3 674   4 658    
Operating (loss)/profit      (209)       31        (4)    (28)       (68)    (108)      (281)   (105)   
3 Includes Tolcon and Construction Products Africa.                                    

The disposal of the Southern African Infrastructure & Building businesses was effective 1 April 2017, and 
the Group recorded R71 million of retained liabilities on the sale of these businesses and other historical
items. Genrec recorded a loss before taxation of R68 million for the year, primarily due to low levels of 
revenue. The sale of Genrec is underway, targeted for completion in the first half of FY2018. 

The R170 million charge representing the net present value of the annual cash contributions to be made over 
12 years in terms of the Voluntary Rebuilding Programme arrangement was also recorded under discontinued 
operations. This arrangement was concluded between the listed construction companies and the South African 
Government, as previously announced on the Stock Exchange News Service ("SENS") of the JSE Limited. 

ACQUISITION OF A FURTHER INTEREST IN BOMBELA CONCESSION COMPANY
Shareholders are referred to the announcement released on SENS on 22 August 2017, regarding the acquisition 
of a further 17% in Bombela Concession Company (RF) Proprietary Limited ("BCC") by Murray & Roberts Limited 
for a total consideration of R405 million. The cash position of the Company and its subsidiaries is sufficiently 
robust to undertake the acquisition. BCC holds the 15-year concession for operating and maintaining the 
Gautrain system until March 2026. We expect this low-risk investment in BCC to continue providing strong 
returns, given that we know the business well and have representation on its board. The implementation of 
the transaction remains subject to BCC lenders' and regulatory approvals.

SHARE REPURCHASE PROGRAMME
Shareholders are referred to the announcement released on SENS on 30 June 2017 regarding the Company's 
decision to approve an on market share repurchase programme to the value of R250 million. As at close of 
the market on 22 August 2017, shares to the value of R9,3 million had been bought.

HEALTH AND SAFETY 
The Board deeply regrets the death of Ditebogo Phuduhudu (27), an employee of the former Infrastructure 
& Building platform, who sustained fatal injuries while on duty on the Noupoort Wind Farm Project in the 
Northern Cape on 12 July 2016. 

The Group's overall lost time injury frequency rate ("LTIFR") reduced to a record-low level of 0.52 
(FY2016: 0.68). The Group-wide implementation over the last year of the Major Accident Prevention programme, 
which empowers supervisors and the workforce to plan and take ownership of safety outcomes, has delivered 
excellent results and supported a record-low LTIFR for the Group.

The Group has introduced and embedded several key initiatives, including a focus on lead indicators and 
improved incident reporting and analysis. Our goal is zero harm to our employees, service providers and 
communities where we operate.

UPDATE ON THE GROUP'S CLAIMS PROCESSES
Following the settlement of the Gautrain development period claims, the Group's uncertified revenue as 
at the end of June 2017 reduced to R0,9 billion (FY2016: R2 billion). Current uncertified revenue is 
primarily represented by the Group's claims on projects in the Middle East, after taking into 
consideration a R445 million loan paid on account by a client. All claims are diligently pursued 
and stakeholders will be kept informed as to their progress. After a protracted legal process, 
the Dubai Airport claim is finally in arbitration, with an award expected in May 2018. Where in 
the past uncertified revenue had been taken to account on certain claims, the settlement of those 
claims in the recent past has been at revenue levels no lower than what had been taken to account 
in respect of those claims. 
 
GRAYSTON PEDESTRIAN BRIDGE TEMPORARY WORKS COLLAPSE - UPDATE
In November 2015, the Department of Labour instituted a Section 32 Inquiry ("the Inquiry") into this incident 
to determine the cause or causes for the collapse of the temporary works structure. This formal Inquiry currently 
underway, is conducted in terms of the provisions of the Occupational Health and Safety Act, 1993. The Inquiry 
was recently paused, but is due to resume again in September 2017. The Board is disappointed at the slow pace 
that is delaying closure of this distressing incident for all parties involved.

All costs incurred to date have been expensed as and when incurred. This incident is one of the retained liabilities
following the disposal of the Southern African Infrastructure & Building businesses, and the direct financial 
impact of this incident on the Group is not expected to be material considering the comprehensive insurance cover 
in place. The project is expected to be completed during the latter part of the 2017 calendar year, and the date 
by which the Inquiry will be concluded remains uncertain. 

CHANGES TO THE BOARD
Michael McMahon and Royden Vice retired from the Board, effective 30 September 2016 and 30 November 2016 respectively,
having reached the mandatory retirement age for Board members. The Group thanks Michael and Royden for their
contribution to the Board since 2004 and 2005 respectively. 

Shareholders are also referred to the announcements released on SENS on 30 November 2016 and 9 March 2017
respectively, regarding the retirement of Cobus Bester as Group Financial Director and the appointment of 
Daniël Grobler as Group Financial Director effective 1 April 2017. 

Subsequent to year end, Suresh Kana was appointed as independent non-executive chairman to succeed Mahlape Sello,
who will retire as chairman and director of the Group at the conclusion of the 2017 annual general meeting ("AGM").
Furthermore, Dave Barber, who has served as an independent non-executive director since June 2008, will also step 
down from the Board at the AGM.

As announced on SENS on 17 August 2017, Ralph Havenstein was appointed as Lead Independent director, and three 
new directors, Diane Radley, Emma Mashilwane and Alex Maditsi, were appointed to the Board. Emma Mashilwane and 
Diane Radley have been appointed to both the audit & sustainability and risk committees, with Diane assuming 
chairmanship of the audit & sustainability committee after the AGM. Alex Maditsi has been appointed to the 
health, safety & environment, remuneration and social & ethics committees respectively. In addition, 
Xolani Mkhwanazi has been appointed to the social & ethics committee and Ntombi Langa-Royds will be appointed 
to the nomination committee after the AGM.

ACQUISITION BY ATON OF A BENEFICIAL INTEREST IN MURRAY & ROBERTS
Shareholders are referred to the SENS announcement released by the Company on 22 February 2017, relating to the
acquisition by ATM Holding GmbH ("ATON"), a company registered in accordance with the laws of Germany, of a material
beneficial interest in Murray & Roberts. As at 30 April 2017, ATON's beneficial interest in Murray & Roberts 
increased to 29.998% according to the Group's analysis. The Group has not received any further correspondence 
or communication from ATON regarding its intentions in relation to its investment in the Company.

PROSPECTS STATEMENT
The Group's strategy and business model is now clearly defined and the focus is on optimising business performance 
and growing shareholder value. The Group's strong financial position and improving financial performance expectations 
will support its organic and acquisitive growth plans.

The Group's low order book is reflective of current market conditions, but of a high quality given the prudent
approach we apply to mitigate project risk at tendering stage. While there is some cause for apprehension, near 
orders are looking robust and the medium-term project pipeline is strong, specifically in both the Underground 
Mining and the Oil & Gas businesses.

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 believe an improvement 
in the Group's financial performance can be expected in the next financial year. The natural resources market 
sector is cyclical and leading researchers are of the opinion that the metals and minerals cycle has already 
turned - and our assessment is that the Group is well positioned for the upcycle. 

Any forward-looking information contained in this announcement has not been reviewed and reported on by the 
Group's external auditors.

On behalf of the directors:
Mahlape Sello                Henry Laas                   Daniel Grobler
Chairman of the Board        Group Chief Executive        Group Financial Director

Bedfordview
23 August 2017

# The operating performance information disclosed has been extracted from the Group's operational reporting systems.
  The Corporate & Properties segment is excluded from the operational analysis. Unless otherwise noted, all 
  comparisons are to the Group's performance as at and for the year ended 30 June 2016.

SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE  
for the year ended 30 June 2017 
                                                                             Audited       Audited4    
                                                                              Annual         Annual     
                                                                             30 June        30 June    
R millions                                                                      2017           2016    
Continuing operations                                                                                  
Revenue                                                                       21 397         26 148    
- Continuing operations excluding Middle East                                 20 789         24 445    
- Middle East                                                                    608          1 703    
                                                                                                       
Profit before interest, depreciation and amortisation                            963          1 774    
Depreciation                                                                    (431)          (448)    
Amortisation of intangible assets                                                (45)           (51)    
Profit before interest and taxation (note 2)                                     487          1 275    
- Continuing operations excluding Middle East                                  1 055          1 343    
- Middle East                                                                   (568)           (68)    
Net interest expense                                                             (42)           (71)    
Profit before taxation                                                           445          1 204    
Taxation                                                                        (161)          (296)    
Profit after taxation                                                            284            908    
Income from equity accounted investments                                           7             18    
Profit from continuing operations                                                291            926    
Loss from discontinued operations (note 3)                                      (253)          (136)    
Profit for the year                                                               38            790    
Attributable to:                                                                                       
- Owners of Murray & Roberts Holdings Limited                                     48            753    
- Non-controlling interests                                                      (10)            37    
                                                                                  38            790    
Earnings per share from continuing and                                  
discontinued operations (cents)                                         
- Diluted                                                                         12            182    
- Basic                                                                           12            189    
Earnings per share from continuing operations (cents)                                                  
- Diluted                                                                         74            215    
- Basic                                                                           76            223    
Supplementary statement of financial performance information                                           
Net asset value per share (Rands)                                                 15             16    
Dividends per share (cents)                                                       45             45    
Number of ordinary shares in issue ('000)                                    444 736        444 736    
Reconciliation of weighted average number of                            
shares in issue ('000)                                                  
Weighted average number of ordinary shares in issue                          444 736        444 736    
Less: Weighted average number of shares held by                         
The Murray & Roberts Trust                                                       (30)           (30)    
Less: Weighted average number of shares held by                         
the Letsema BBBEE trusts                                                     (31 697)       (31 711)    
Less: Weighted average number of shares held by                         
the subsidiary companies                                                     (15 373)       (14 341)    
Weighted average number of shares used for basic                        
per share calculation                                                        397 636        398 654    
Add: Dilutive adjustment                                                       8 013         13 865    
Weighted average number of shares used for diluted                      
per share calculation                                                        405 649        412 519    
Earnings per share from continuing operations (cents)                                                  
- Diluted                                                                         74            215    
- Adjusted diluted earnings per share excluding Middle East                      214            234    
- Diluted earnings per share contributed by Middle East                         (140)           (19)    
- Basic                                                                           76            223    
- Adjusted basic earnings per share excluding Middle East                        218            242    
- Basic earnings per share contributed by Middle East                           (142)           (19)    
Headline earnings per share from continuing and discontinued            
operations (cents) (note 4)                                             
- Diluted                                                                         26            153    
- Basic                                                                           27            158    
Headline earnings per share from continuing                             
operations (cents) (note 4)                                             
- Diluted                                                                         72            178    
- Adjusted diluted headline earnings per share excluding Middle East             212            197    
- Diluted headline earnings per share contributed by Middle East                (140)           (19)    
- Basic                                                                           74            185    
- Adjusted basic headline earnings per share excluding Middle East               216            204    
- Basic headline earnings per share contributed by Middle East                  (142)           (19)    
4 A 38% investment in Forum SA Trading 284 (Pty) Ltd (Property development) was not included in the  
  sale of the Southern African Infrastructure & Building businesses and has therefore been reclassified 
  from discontinued operations in the prior year and included as income from continuing operations for 
  all periods presented.                                  
                                                                    
SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME           
for the year ended 30 June 2017                                                                         
                                                                             Audited        Audited    
                                                                              Annual         Annual     
                                                                             30 June        30 June    
R millions                                                                      2017           2016    
Profit for the year                                                               38            790    
Items that will not be reclassified subsequently               
to profit or loss:                                             
Effects of remeasurements on retirement benefit obligations                       (5)            (3)   
Items that will be reclassified subsequently to profit or loss:                                         
Exchange differences on translating foreign operations         
and realisation of reserve                                                      (488)           226    
Total comprehensive (loss)/income for the year                                  (455)         1 013    
Attributable to:                                                                                        
- Owners of Murray & Roberts Holdings Limited                                   (421)           975    
- Non-controlling interests                                                      (34)            38    
                                                                                (455)         1 013    
                                                                                                                          
SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION                                                                   
at 30 June 2017                                                                                          
                                                                             Audited        Audited    
                                                                              Annual         Annual     
                                                                             30 June        30 June    
R millions                                                                      2017           2016    
ASSETS                                                                                                 
Non-current assets                                                             5 049          6 095    
Property, plant and equipment                                                  2 058          2 189    
Investment property                                                               19              -    
Goodwill (note 5)                                                                607            642    
Deferred taxation assets                                                         585            604    
Investments in associate companies                                                 8             18    
Investment in joint venture                                                       73              -    
Amounts due from contract customers (note 6)                                     542          1 514    
Other non-current assets                                                       1 157          1 128    
Current assets                                                                 8 757          9 535    
Inventories                                                                      280            241    
Trade and other receivables                                                    1 167          1 490    
Amounts due from contract customers (note 6)                                   4 914          4 965    
Current taxation assets                                                           23             26    
Derivative financial instruments                                                   2              -    
Cash and cash equivalents                                                      2 371          2 813    
Assets classified as held-for-sale                                               397          2 335    
TOTAL ASSETS                                                                  14 203         17 965    
EQUITY AND LIABILITIES                                                                                 
Total equity                                                                   6 605          7 264    
Attributable to owners of Murray & Roberts Holdings Limited                    6 541          7 201    
Non-controlling interests                                                         64             63    
Non-current liabilities                                                          665          1 117    
Long-term liabilities5                                                           220            650    
Long-term provisions                                                             145            187    
Deferred taxation liabilities                                                    121            179    
Other non-current liabilities                                                    179            101    
Current liabilities                                                            6 791          7 694    
Amounts due to contract customers (note 6)                                     1 571          1 522    
Accounts and other payables                                                    4 819          5 723    
Current taxation liabilities                                                      39             60    
Bank overdrafts5                                                                 118             76    
Short-term loans5                                                                244            313    
Liabilities classified as held-for-sale                                          142          1 890    
TOTAL EQUITY AND LIABILITIES                                                  14 203         17 965    
5 Interest-bearing borrowings.                                                                         
                                                                  
SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS                                                       
for the year ended 30 June 2017                                                                       
                                                                             Audited       Audited6    
                                                                              Annual         Annual     
                                                                             30 June        30 June    
R millions                                                                      2017           2016    
Cash generated by operations                                                   1 055          1 089    
Interest received                                                                 88             77    
Interest paid                                                                   (138)          (148)    
Taxation paid                                                                   (210)          (256)    
Operating cash flow                                                              795            762    
Dividends paid to owners of Murray & Roberts Holdings Limited                   (194)          (211)    
Net cash inflow from operating activities                                        601            551    
Acquisition of businesses                                                          -            (22)    
Dividends received from joint venture classified as held-for-sale                  -              2    
Dividends received from associate companies                                       19             18    
Investment in joint venture                                                        -            (24)    
Investment in joint venture held-for-sale                                         (2)             -    
Purchase of intangible assets other than goodwill                                (24)           (62)    
Purchase of property, plant and equipment by entities classified as
held-for-sale                                                                    (53)             -    
Purchase of property, plant and equipment                                       (264)          (338)    
- Replacements                                                                  (116)           (99)    
- Additions                                                                     (395)          (332)    
- Capitalised finance leases raised (non-cash)                                   247             93    
Proceeds on disposal of property, plant and equipment                             45            160    
Net (outflow)/inflow on disposal of business                                    (323)            15    
Proceeds on disposal of intangible assets other than goodwill                      7              -    
Proceeds of disposal of assets held-for-sale                                      37              -    
Cash related to assets held-for-sale                                             259           (257)    
Proceeds from realisation of investment                                          170             54    
Other (net)                                                                        2             (3)    
Net cash outflow from investing activities                                      (127)          (457)    
Net movement in borrowings                                                      (661)          (467)    
Net acquisition of treasury shares                                               (41)           (78)    
Net cash outflow from financing activities                                      (702)          (545)    
Total decrease in net cash and cash equivalents                                 (228)          (451)    
Net cash and cash equivalents at beginning of year                             2 737          2 847    
Effect of foreign exchange rates                                                (256)           341    
Net cash and cash equivalents at end of year                                   2 253          2 737    
Net cash and cash equivalents comprises:                                                               
Cash and cash equivalents                                                      2 371          2 813    
Bank overdrafts                                                                 (118)           (76)    
Net cash and cash equivalents at end of year                                   2 253          2 737    
6 In the 2016 financial year the non-cash element of capitalised finance leases was in error included 
  under investing cash flows as purchase of property, plant and equipment (R93 million). Therefore 
  the 2016 cash flow has been restated with the resulting impact being that the cash outflow from 
  financing activities increased by R93 million and the cash outflow from investing activities 
  decreased by R93 million.                                 

SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                                              
for the year ended 30 June 2017                              
                                                                              Attributable       
                                                                                 to owners        
                                                                                 of Murray       
                                                                                 & Roberts           Non-       
                                              Stated      Other    Retained       Holdings    controlling     Total    
R millions                                   capital   reserves    earnings        Limited      interests    equity    
Balance at 30 June 2015 (Audited)              2 586      1 343       2 569          6 498             25     6 523    
Total comprehensive income for the year            -        224         751            975             38     1 013    
Treasury shares acquired (net)                   (34)         -           -            (34)             -       (34)    
Recognition of share-based payment                 -         17           -             17              -        17    
Utilisation of share-based payment reserve         -        (44)          -            (44)             -       (44)    
Transfer to retained earnings                      -         (2)          2              -              -         -    
Dividends declared and paid7                       -          -          (4)            (4)             -        (4)    
Dividends declared and paid to owners                                                                       
of Murray & Roberts Holdings Limited               -          -        (207)          (207)             -      (207)    
Balance at 30 June 2016 (Audited)              2 552      1 538       3 111          7 201             63     7 264    
Total comprehensive (loss)/income 
for the year                                       -       (469)         48           (421)           (35)     (456)    
Treasury shares disposed (net)                    14          -           -             14              -        14    
Recognition of share-based payment                 -         33           -             33              -        33    
Realisation of minority interest reserve           -        (24)        (12)           (36)            36         -    
Utilisation of share-based payment reserve         -        (55)          -            (55)             -       (55)    
Transfer to retained earnings                      -        (26)         26              -              -         -    
Dividends declared and paid7                       -          -          (8)            (8)             -        (8)    
Dividends declared and paid to owners of                                                                    
Murray & Roberts Holdings Limited                  -          -        (187)          (187)             -      (187)    
Balance at 30 June 2017 (Audited)              2 566        997       2 978          6 541             64     6 605    
7 Dividends relate to distributions made by entities that hold treasury shares.                                                                                                

SUMMARISED CONSOLIDATED SEGMENTAL ANALYSIS                                 
for the year ended 30 June 2017                                         
                                               Audited       Audited    
                                                Annual        Annual     
                                               30 June       30 June    
R millions                                        2017          2016    
Revenue8                                                                
Bombela & Middle East                              729         1 872    
Power & Water                                    5 908         4 276    
Underground Mining                               8 046         8 788    
Oil & Gas                                        6 714        11 212    
Continuing operations                           21 397        26 148    
Discontinued operations                          3 674         4 658    
                                                25 071        30 806    
Continuing operations                                                   
Profit/(loss) before interest and taxation9                                    
Bombela & Middle East                             (149)            6    
Power & Water                                      171            27    
Underground Mining                                 464           506    
Oil & Gas                                          217           525    
Corporate & Properties                            (216)          211    
Profit before interest and taxation                487         1 275    
Net interest expense                               (42)          (71)    
Profit before taxation                             445         1 204    
Discontinued operations                                                 
Loss before interest and taxation9                (281)         (118)    
Net interest expense                                (9)            -    
Loss before taxation                              (290)         (118)    
8 Revenue is disclosed net of inter-segmental revenue. Inter-segmental revenue for the Group is 
  R70 million (2016: R98 million).                                 
9 The chief operating decision maker utilises profit/(loss) before interest and taxation in the 
  assessment of a segment's performance.                                 

SEGMENTAL ASSETS (CONTINUING AND DISCONTINUED)                                 
at 30 June 2017                                                         
                                               Audited       Audited    
                                                Annual        Annual     
                                               30 June       30 June    
R millions                                        2017          2016    
Bombela & Middle East10                          2 846         5 454    
Power & Water11                                  1 813         1 702    
Construction Products Africa12                      10            19    
Underground Mining                               3 615         3 631    
Oil & Gas                                        2 528         2 919    
Corporate & Properties13                           412           797    
                                                11 224        14 522    
Reconciliation of segmental assets                                      
Total assets                                    14 203        17 965    
Deferred taxation assets                          (585)         (604)    
Current taxation assets                            (23)          (26)    
Cash and cash equivalents                       (2 371)       (2 813)    
                                                11 224        14 522    

SEGMENTAL LIABILITIES (CONTINUING AND DISCONTINUED)                                 
at 30 June 2017                                                         
                                               Audited       Audited    
                                                Annual        Annual     
                                               30 June       30 June    
R millions                                        2017          2016    
Bombela & Middle East10                          1 605         4 195    
Power & Water11                                  1 406         1 346    
Construction Products Africa12                       -             2    
Underground Mining                               1 909         1 873    
Oil & Gas                                        1 978         2 072    
Corporate & Properties13                           422           898    
                                                 7 320        10 386    
Reconciliation of segmental liabilities                                 
Total liabilities                                7 598        10 701    
Deferred taxation liabilities                     (121)         (179)    
Current taxation liabilities                       (39)          (60)    
Bank overdrafts                                   (118)          (76)    
                                                 7 320        10 386    
10 Bombela & Middle East platform includes amounts for discontinued operations Tolcon 
   & Southern African Infrastructure & Building businesses.                                   
11 Power & Water platform includes amounts for Genrec Engineering that is classified as 
   part of discontinued operations.                                   
12 Construction Products Africa operating platform is classified as discontinued operations.         
13 Corporate segmental assets include the inter-segment eliminations of group loans and receivables.             

NOTES
1.  BASIS OF PREPARATION
    The Group operates in the mining, oil & gas and power & water markets 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 provisional summarised consolidated financial statements for the year ended 30 June 2017 have 
    been prepared in compliance with the Listings Requirements of the JSE Limited, the framework concepts 
    and the measurement and recognition requirements of International Financial Reporting Standards ("IFRS"), 
    the minimum requirements of the International Accounting Standards ("IAS") 34, Interim Financial Reporting, 
    SAICA Financial Reporting Guidelines as issued by the Accounting Practices Committee and the Financial 
    Pronouncements as issued by the Financial Reporting Standards Council and the Companies Act, No 71 of 2008
    ("Act"). These summarised consolidated financial statements and the consolidated annual financial statements
    were compiled under the supervision of DF Grobler CA)SA, Group financial director and have been audited in 
    terms of section 29(1) of the Act and signed by the directors on 23 August 2017.

    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 consolidated financial statements 
    for the year ended 30 June 2016. There have been no new Standards and Interpretations applied in the 
    current financial year.

    The external auditors, Deloitte & Touche, have issued their opinion on the Group's consolidated financial 
    statements for the year ended 30 June 2017. The audit was conducted in accordance with International Standards 
    on Auditing. The auditor responsible for the audit is G Berry. They have issued an unmodified audit opinion 
    on the consolidated financial statements and provisional summarised consolidated financial statements. 
    These provisional summarised consolidated financial statements have been derived and are consistent in all 
    material respects with the Group's consolidated financial statements. A copy of their audit report on the 
    consolidated financial statements is available for inspection at the Company's registered office. 
    Any reference to future financial performance included in this announcement has not been audited and 
    reported on by the Group's external auditors. The auditor's report does not necessarily report on all of 
    the information contained in this announcement. Shareholders are therefore advised that in order to obtain 
    a full understanding of the nature of the auditor's engagement they should obtain a copy of that report 
    together with the accompanying financial information from the issuer's registered office.

    The information presented in the notes below represent audited results for 30 June 2017 and for 30 June 2016.

2.  PROFIT BEFORE INTEREST AND TAXATION                                                                                
                                                                Audited        Audited    
                                                                 Annual         Annual     
                                                                30 June        30 June    
    R millions                                                     2017           2016    
    Items by function                                                                     
    Cost of sales                                               (19 552)       (23 199)    
    Distribution and marketing expenses                             (11)            (9)    
    Administration costs                                         (2 104)        (2 461)    
    Other operating income                                          757            796    

3.  LOSS FROM DISCONTINUED OPERATIONS                                                                                  
    Discontinued operations includes the Southern African Infrastructure & Building businesses that were sold 
    during the current financial year and Genrec operations, where an active process is in place to sell 
    the business. These operations have met the requirements in terms of IFRS 5 Discontinued Operations 
    and have been presented as discontinued operations in the Group's statement of financial performance.                                  

3.1 LOSS FROM DISCONTINUED OPERATIONS                
                                                                Audited       Audited4    
                                                                 Annual         Annual     
                                                                30 June        30 June    
    R millions                                                     2017           2016    
    Revenue                                                       3 674          4 658    
    Loss before interest, depreciation and amortisation            (279)            (8)    
    Depreciation and amortisation                                    (2)          (110)    
    Loss before interest and taxation (note 3.2)                   (281)          (118)    
    Net interest expense                                             (9)             -    
    Loss before taxation                                           (290)          (118)    
    Taxation credit/(expense)                                        37            (18)    
    Loss after taxation                                            (253)          (136)    
    Income from equity accounted investments14                        -              -    
    Loss from discontinued operations                              (253)          (136)    
    Attributable to:                                                                       
    - Owners of Murray & Roberts Holdings Limited                  (253)          (136)    
    - Non-controlling interests                                       -              -    
                                                                   (253)          (136)    
                                                 
3.2 LOSS BEFORE INTEREST AND TAXATION   
    Loss before interest and taxation 
    includes the following significant items:                                  
    (Loss)/profit on disposal of businesses 
    (net of transaction and other costs)                            (28)             6    
    Fair value adjustment on disposal group held-for-sale           (96)           (44)    
    Impairment of property, plant and equipment (net)                 -            (36)    
    Voluntary Rebuilding Programme charge                          (170)             -    
                                                                                      
3.3 CASH FLOWS FROM DISCONTINUED OPERATIONS INCLUDE THE FOLLOWING:                                                    
    Cash flow from operating activities                            (110)           (92)    
    Cash flow from investing activities                             (78)           (55)    
    Cash flow from financing activities                              25            (29)    
    Net decrease in cash and cash equivalents                      (163)          (176)    
    4  A 38% investment in Forum SA Trading 284 (Pty) Ltd (Property development) was not included in 
       the sale of the Southern African Infrastructure & Building businesses and has therefore 
       been reclassified from discontinued operations in the prior year and included as income from 
       continuing operations for all periods presented.
    14 Amount is less than R1 million.  

4.  RECONCILIATION OF HEADLINE EARNINGS                                                  
                                                                Audited       Audited4    
                                                                 Annual         Annual     
                                                                30 June        30 June    
    R millions                                                     2017           2016    
    Profit attributable to owners of                          
    Murray & Roberts Holdings Limited                                48            753    
    Loss/(profit) on disposal of                              
    businesses (net)                                                 28             (6)    
    Profit on disposal of property, plant                     
    and equipment (net)                                             (30)           (63)    
    Profit on sale of assets held-for-sale (net)                    (17)             -    
    Impairment of assets (net)                                       11             49    
    Reversal of impairment of property,                       
    plant and equipment (net)                                        (1)             -    
    Fair value adjustment on disposal group                   
    classified as held-for-sale                                      96             44    
    Fair value adjustments and net loss on                    
    disposal of assets held-for-sale                                  -             26    
    Fair value adjustments on investment property                    (7)            (5)    
    Fair value adjustments on investment property             
    (equity accounted investments)                                    -            (13)    
    Realisation of foreign currency translation reserve               -           (223)    
    Taxation effects on adjustments                                 (22)            69    
    Headline earnings                                               106            631    
    Adjustments for discontinued operations:                                             
    Loss from discontinued operations                               253            136    
    (Loss)/profit on disposal of businesses (net)                   (28)             6    
    Profit on disposal of property, plant and            
    equipment (net)                                                   8             57    
    Profit on sale of assets held-for-sale (net)                     17              -    
    Fair value adjustment on disposal group              
    classified as held-for-sale                                     (96)           (44)    
    Fair value adjustments on assets held-for-sale                    -            (26)    
    Fair value adjustments on investment property                     7              5    
    Fair value adjustments on investment property        
    (equity accounted investments)                                    -             13    
    Impairment of property, plant and equipment (net)                 -            (36)    
    Taxation effects on adjustments                                  26             (6)    
    Headline earnings from continuing operations                    293            736    
    4 A 38% investment in Forum SA Trading 284 (Pty) Ltd (Property development) was not included in the 
      sale of the Southern African Infrastructure & Building businesses and has therefore been 
      reclassified from discontinued operations in the prior year and included as income from continuing 
      operations for all periods presented.                                 

5.  GOODWILL                                                                           
                                                                Audited        Audited    
                                                                 Annual         Annual     
                                                                30 June        30 June    
    R millions                                                     2017           2016    
    At the beginning of the year                                    642            636    
    Additions through business combinations                           -             21    
    Foreign exchange movements                                      (35)            29    
    Transfer to assets classified as held-for-sale                    -            (44)    
                                                                    607            642    
    The Group tests goodwill annually for impairment or more frequently if there are indications that 
    goodwill might be impaired. Based on the assessment performed as at 30 June 2017, no impairment 
    was recorded.                                 

6.  CONTRACTS-IN-PROGRESS AND CONTRACT RECEIVABLES                                           
                                                                Audited        Audited    
                                                                 Annual         Annual     
                                                                30 June        30 June    
    R millions                                                     2017           2016    
    Contracts-in-progress (cost incurred plus recognised                   
    profits, less recognised losses)                              1 903          1 943    
    Uncertified claims and variations (recognised in 
    terms of IAS 11: Construction Contracts)                        914          2 020    
    Amounts receivable on contracts (net of                                
    impairment provisions)                                        2 343          2 241    
    Retentions receivable (net of impairment provisions)            296            275    
                                                                  5 456          6 479    
    Amounts received in excess of work completed                 (1 571)        (1 522)    
                                                                  3 885          4 957    
    Disclosed as:                                                                         
    Amounts due from contract customers - non-current15             542          1 514    
    Amounts due from contract customers - current                 4 914          4 965    
    Amounts due to contract customers - current                  (1 571)        (1 522)    
                                                                  3 885          4 957    
    15 The non-current amounts are considered by management to be recoverable.              

7.  FINANCIAL INSTRUMENTS                                                                                                  
    The Group's financial instruments consist mainly of deposits with banks, local money market instruments, 
    short-term investments, derivatives, accounts receivable and payable and interest-bearing borrowings.                                 
                                                                Audited        Audited    
                                                                 Annual         Annual     
                                                                30 June        30 June    
    R millions                                                     2017           2016    
    Categories of financial instruments                                                   
    Financial assets                                                                      
    Financial assets designated as fair value through 
    profit or loss (level 3)                                        893            811    
    Loans and receivables                                         6 148          6 720    
    Available-for-sale financial assets carried 
    at fair value (level 1)14                                         -              -    
    Derivative financial instruments (level 2)16                      2              -    
    Financial liabilities                                                                 
    Loans and payables                                            5 146          6 447    
    14 Amount is less than R1 million.                                                  
    16 The derivative financial instruments' value has been determined by using forward looking market rates 
       until the realisation date of the relevant financial institutions.                                   
                                                                                 
7.1 FINANCIAL ASSETS DESIGNATED AS FAIR VALUE THROUGH PROFIT OR LOSS          
    Investment in infrastructure service concession 
    (level 3)17                                          
    At the beginning of the year                                    811            709    
    Realisation of investment                                      (170)           (54)    
    Fair value adjustment recognised in the statement 
    of financial performance                                        252            156    
                                                                    893            811    
   17 The fair value of the Bombela Concession Company Proprietary Limited investment is calculated using discounted  
      cash flow models and a market discount rate of 18,5% (2016: 18,5%). The discounted cash flow models are based 
      on forecast patronage, operating costs, inflation and other economic fundamentals, taking into consideration 
      the operating conditions experienced in the current financial year. The future profits from the concession 
      are governed by a contractual agreement and are principally based on inflationary increases in the patronage 
      revenue and operating costs of the current financial year. A decrease of 1% in the discount rate would result 
      in an increase in the value of the concession investment of approximately R31,2 million (2016: R34,5 million).                                 

      Operating cost includes an operating fee that is payable to the Bombela Operating Company Proprietary Limited 
      ("BOC"), the company responsible for the operation and maintenance of Gautrain. The fee payable to BOC is 
      subject to annual inflationary increases. The contract is subject to review every fifth year where increases 
      of more than inflation are considered. An annual operating fee increase of 1% above inflation will result in 
      a decrease in the value of the concession investment of approximately R17,7 million (2016: R16,1 million).      

      Operating cost also includes a Railway Usage Fee ("RUF") which constitutes a fee for the use of the system 
      owned by Gauteng Province. The fee is 50% of the concessionaires excess free cash flow above an 18% real 
      rate of return. The fee reduces to 35% should the concessionaire comply with certain Socio Economic 
      Development ("SED") obligations. Historically the SED obligations have been achieved and the valuation is 
      based on the SED obligations being achieved. If these obligations are not achieved, then the result would 
      be a decrease in the value of the concession investment of R191 million (2016: R159 million).          

      Revenue based on patronage is underpinned by the Gauteng Province. The Patronage Guarantee is the difference 
      between the Minimum Required Total Revenue ("MRTR") and the Actual Total Revenue ("ATR") in each month. 
      Due to the predictable nature of revenue it is not considered to be a significant unobservable input and 
      therefore no quantitative information is provided.                                   
                                         
8.  CONTINGENT LIABILITIES                                       
    The Group is from time to time involved in various disputes, claims and legal proceedings arising in the 
    ordinary course of business. The Group does not account for any potential contingent liabilities where a 
    back-to-back arrangement exists with the clients or subcontractors and there is a legal right to offset 
    (R2,4 billion). The Board does not believe that adverse decisions in any pending proceeding or claims 
    against the Group will have a material adverse effect on the financial condition or future of the Group.               
                                                                Audited        Audited    
                                                                 Annual         Annual     
                                                                30 June        30 June    
    R millions                                                     2017           2016    
    Operating lease commitments                                   1 314          1 703    
    Contingent liabilities                                        1 943          2 734    
    Financial institution guarantees                              5 881          8 199    
   
    Update on the Group's claim processes      
    Following the settlement of the Gautrain development period claims, the Group's uncertified revenue as 
    at the end of June 2017 reduced to R0,9 billion (2016: R2 billion). Current uncertified revenue is 
    primarily represented by the Group's claims on projects in the Middle East, after taking into 
    consideration a R445 million loan paid on account by a client. All claims are diligently pursued 
    and stakeholders will be kept informed as to their progress. After a protracted legal process, 
    the Dubai Airport claim is finally in arbitration, with an award expected in May 2018.   

    Grayston Pedestrian Bridge Temporary Works Collapse - Update 
    In November 2015, the Department of Labour instituted a section 32 Inquiry (the  Inquiry") into this incident 
    to determine the cause or causes for the collapse of the temporary works structure. This formal Inquiry 
    currently underway, is conducted in terms of the provisions of the Occupational Health and Safety Act, 1993. 
    The Inquiry was recently paused, but is due to resume again in September 2017. The Board is disappointed at 
    the slow pace that is delaying closure of this distressing incident for all parties involved.                

    All costs incurred to date have been expensed as and when incurred. This incident is one of the retained 
    liabilities following the disposal of the Southern African Infrastructure & Building businesses, and the 
    direct financial impact of this incident on the Group is not expected to be material considering the 
    comprehensive insurance cover in place. The project is expected to be completed during the latter part of 
    the 2017 calendar year, and the date by which the Inquiry will be concluded remains uncertain.                

9.  BUSINESS DISPOSALS 
    The Group disposed of its interest in the Southern African Infrastructure & Building businesses, effective 
    1 April 2017, for a gross consideration of R564 million (R397 million net of transaction costs (R28 million) 
    and purchase price adjustment (R139 million)).                 

    The gross cash consideration of R314 million was received on 12 May 2017. 

    The gross deferred consideration of R250 million mainly relates to working capital assets on contracts that 
    have achieved practical completion as at the effective date, Grayston Pedestrian Bridge and Lonmin receivables. 
    The amount is payable within five days of recovery, after which interest is calculated at bank deposit rates. 
    An amount of R56,8 million relating to the deferred consideration has been written off to profit and loss in 
    the 2017 financial year.                

    The Group has exposure on the items listed below, should further cost be incurred, which were not sufficiently 
    provided for as at the effective date, or that are not covered by additional revenue post the effective date:                 
    - Contracts that have achieved practical completion as at effective date;           
    - Grayston Pedestrian Bridge;                                                        
    - Lonmin;                                                                            
    - Platinum Toll Highway.                                                             

    Where the exposure to these items did not meet the recognition criteria for provisions, they have been included 
    under contingent liabilities, where deemed appropriate.                

    Analysis of assets and liabilities, classified as assets and liabilities held-for-sale in the previous financial 
    year, which were sold during the year.                               
                                                                                  2017    
    Property, plant and equipment                                                 (570)    
    Investment property                                                            (11)    
    Other investments                                                               (6)   
    Non-current receivables                                                       (208)    
    Inventories                                                                     (5)    
    Trade receivables                                                              (96)    
    Contracts-in-progress and contract debtors                                    (359)    
    Amounts due from contract customers                                           (100)    
    Cash and cash equivalents                                                     (470)    
    Other intangible assets                                                         (4)    
    Deferred taxation assets                                                       (24)    
    Long-term loans                                                                248    
    Provisions for obligations                                                      61    
    Trade and other payables                                                       525    
    Short-term loans                                                                77    
    Subcontractor liabilities                                                      314    
    Amounts due to contract customers                                              203    
    Net assets disposed of                                                        (425)    
    Net consideration                                                              397    
    Consideration received in cash and cash equivalents 
    (proceeds (R314 million) net of transaction costs (R28 million) 
    and purchase price adjustment (R139 million))                                  147    
    Deferred consideration recognised as an asset                                  250    
    Loss on disposal of business                                                   (28)    
    Net cash outflow on disposal of business                                               
    Consideration received in cash and cash equivalents                            147    
    Less: Cash and cash equivalent balances disposed of                           (470)    
                                                                                  (323)    

10. DIVIDEND
    In terms of the dividend policy, the Board declared a gross dividend of 45 cents per share on 23 August 2017 
    for the year ended 30 June 2017. The dividends will be declared out of income reserves. The dividend will 
    be subject to dividend tax. The local dividends tax rate is 20% for South African shareholders, except 
    where shareholders are exempt for tax purposes. The gross dividend will be 45 cents and dividend net of 
    dividend tax will be 36 cents. The Group's income tax reference number is 9000203712.       

11. RELATED PARTY TRANSACTIONS   
    There have been no significant changes to the nature of related party transactions since 30 June 2016 or 
    any transactions outside the normal course of business. 

12. EVENTS AFTER REPORTING PERIOD 
    On 29 June 2017 the board of directors of Murray & Roberts (the 'Board') approved a share repurchase 
    programme of up to R250 million through Murray & Roberts Limited, a wholly-owned subsidiary of 
    the Company (the "Share Repurchase"). The cash position of the Company and its subsidiaries is 
    sufficiently robust to undertake the Share Repurchase.  The Share Repurchase is being undertaken 
    as part of Murray & Roberts' broader capital allocation strategy and specifically in light of 
    price performance in the Company's shares, which in the Board's view, continues to undervalue 
    the Company and its prospects. 
    
    On 22 August 2017 the Group announced the conclusion of a memorandum of understanding between 
    all parties, whereby Murray & Roberts Limited ("MRL"), a wholly owned subsidiary of the Company, 
    will increase its effective shareholding in Bombela Concession Company (RF) (Proprietary) Limited 
    ("BCC") by 17%, through an acquisition of shares from Bouygues Travaux Publics S.A.S ("Bouygues") 
    and Bombardier Transportation UK Limited ("Bombardier").  The consideration payable in terms of 
    the Transaction is R405 million. This acquisition is being undertaken as part of Murray & Roberts' 
    broader capital allocation strategy, as the investment in BCC provides strong returns in the short 
    to medium term, whilst the Group continue to look for potential acquisitions that would complement 
    its three operating platforms. Post the Transaction, the investment will still be reflected at 
    fair value through profit or loss, as the investment will still meet the requirement of IAS28.18 
    with regards to venture capital organisations or similar entities, and this does not result in a 
    change of control. The cash position of the Company and its subsidiaries is sufficiently robust 
    to undertake the acquisition. The implementation of the transaction remains subject to approval 
    from the Gauteng Management Agency, Competition Authorities and BCC's funders.
    
    The directors are not aware of any other matter or circumstance arising since the end of the 
    financial year, not otherwise dealt with in the Group and Company annual financial statements, 
    which significantly affects the financial position at 30 June 2017 or the results of its 
    operations or cash flows for the year then ended.  

ADMINISTRATION
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, Braamfontein, 2001

PO Box 4844
Johannesburg 2000

SPONSOR:
Deutsche Securities (SA) Proprietary Limited

DIRECTORS:
M Sello* (Chairman) HJ Laas (Managing & Chief Executive) DD Barber* DF Grobler R Havenstein* SP Kana* 
NB Langa-Royds* AK Maditsi* E Mashilwane* XH Mkhwanazi* 
DC Mc Cann* KW Spence*¹

Secretary:
L Kok 

¹Australian   *Independent non-executive 

Website: www.murrob.com 
E-mail: clientservice@murrob.com

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 Group's strategy; 
the economic outlook for the industry; and the Group's 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 Group's 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 Group's website, nor any website 
accessible by hyperlinks on the Group's website is incorporated in, or forms part of, this announcement.    


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