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RAUBEX GROUP LIMITED - Trading Statement in respect of the year ending 28 February 2019

Release Date: 12/02/2019 09:15
Code(s): RBX     PDF:  
Wrap Text
Trading Statement in respect of the year ending 28 February 2019

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


TRADING STATEMENT IN RESPECT OF THE YEAR ENDING 28 FEBRUARY 2019

In terms of paragraph 3.4(b) of the JSE Limited Listings Requirements, companies are required to publish a
trading statement as soon as they are satisfied that, with a reasonable degree of certainty, the financial results
for the current reporting period will differ by at least 20% from the financial results of the previous
corresponding period.

Shareholders are advised that Raubex expects its earnings per share and headline earnings per share for the
year ending 28 February 2019 to be at least 20% lower than the earnings per share and headline earnings per
share from the previous corresponding period. This translates to earnings per share and headline earnings per
share being at least 46,7 cents and 45,7 cents lower than the earnings per share and headline earnings per
share of 233,5 cents and 228,6 cents achieved in the previous corresponding period respectively.

The Company has continued experiencing weak trading conditions in the South African construction industry
during the second half of the financial year, particularly in the road construction sector. This has negatively
impacted Raubex subsidiaries both in the road construction operations and in the road rehabilitation and
maintenance operations, which includes the supply of asphalt and bitumen to the market. As reported in the
interim results released on 29 October 2018, the Company went through a process of rightsizing the affected
subsidiaries during the first half of the financial year. Rightsizing initiatives continued during the second half of
the financial year to further reduce capacity in line with the current low level of demand being experienced.

The materials division, which contributed 54,5% of the Company’s total operating profit in the previous
corresponding period, has experienced stable operating conditions during the current financial year and its
diversified operations including material handling services to the mining sector and commercial aggregate
supply, have continued to support the Company’s earnings.

The infrastructure division has experienced favourable conditions in the affordable housing sector throughout
the financial year. The division is also well positioned to benefit from the roll out of work related to the
Renewable Energy Independent Power Producer Procurement Programme (“REIPPPP”) in which a number of
contracts are being negotiated. Three REIPPPP contracts to the total value of R621 million have been secured
during the year and work commenced on these projects during the second half of the financial year.

Notwithstanding the challenging conditions being faced by the South African construction industry, the
Company has maintained a strong balance sheet throughout the year and is well positioned to participate in
any future opportunities in the sector should conditions begin to improve.
In terms of paragraph 3.4(b)(iii)(3) of the JSE Limited Listings Requirements, once more certainty is obtained,
the Company will provide further guidance.

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



Centurion
12 February 2019

Sponsor
Investec Bank Limited

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