MURRAY & ROBERTS HOLDINGS LIMITED - Trading Statement for the year ended 30 June 2020

Trading Statement for the year ended 30 June 2020

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

TRADING STATEMENT FOR THE YEAR ENDED 30 JUNE 2020

Stakeholders are referred to the business update and trading statement published by the
Group on SENS on 25 May 2020.

The Group’s global portfolio of projects experienced a significant COVID-19 profit impact
during the reporting period, as a result of the measures implemented to limit the spread of
the virus. Few projects continued with little or no disruption, some were suspended and
others were placed on care and maintenance. Globally, most office-based employees
continue to work remotely, whilst the majority of projects have now resumed operations.

The Group entered the COVID-19 period of disruption and uncertainty with a strong balance
sheet and took early and proactive action to preserve its financial position. Prudent cash
and working capital management initiatives were implemented across the Group and no
client has defaulted on payments as a result of COVID-19.

In terms of overall financial performance and prior to the impact of COVID-19, the Group
was tracking well to meet its guidance of an improved performance in FY2020, relative to
the previous reporting period. The direct profit impact of this pandemic on projects during
the year is estimated at R622 million. This negative impact, combined with the impairment
of an R80 million vendor loan relating to the sale of Genrec, now in business rescue, the
impairment of R63 million relating to goodwill on two Group companies due to market
uncertainty, and the impairment of R46 million of uncertified revenue on a claim, created a
perfect storm for the Group. Execution challenges on a few projects, also disappointed.

The Company expects to report FY2020 results within the following ranges:

                                                 30 June 2020           30 June 2019
                                                Expected range              Actual
                                                   (cps loss)            (cps profit)
 (LOSS)/PROFIT PER SHARE
 Basic                                             (95) – (83)                85
 Diluted                                           (95) – (83)                83
 HEADLINE (LOSS)/PROFIT PER SHARE
 Basic                                             (86) – (74)                80
 Diluted                                           (86) – (74)                78

The Group has a significant, quality order book of R54,2 billion and near orders of R11,4
billion, which underscores the Board’s confidence in the Group’s strategy. The project
opportunity pipeline includes a significant value of near orders and Category 1 opportunities
include four projects which are being negotiated on a sole-source basis, with a combined
value of approximately R40 billion.

The Group’s financial position is robust and sufficient to fund its growth plans and debt is
within its targeted range.

In the year ahead, the focus will be on at least maintaining the order book at current levels,
if not growing the order book, improving project execution, reducing working capital,
progressing digitalisation, and exiting the Middle East – which the Board believes will
support a return to profitability in FY2021 and a path to earnings growth beyond.

PUBLICATION OF ANNUAL FINANCIAL RESULTS

Murray & Roberts intends to publish its annual financial results, for the year to 30 June 2020
on SENS on Wednesday, 26 August 2020, before 17:00 (CAT).

The information contained in this announcement has not been reviewed and reported on by
Murray & Roberts’ external auditors.

Bedfordview

19 August 2020

Sponsor
The Standard Bank of South Africa Limited

Date: 19-08-2020 02:00:00
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