Raubex Group benefits from restructuring
CAPE TOWN - Raubex Group’s headline earning per share increased 64.1 percent to 58,6 cents per share in the six months to August 31 after the construction materials and infrastructure group benefited from restructuring the previous financial year.
Raubex Group CEO Rudolf Fourie, said that following a number of rightsizing initiatives in 2019, “we have managed to stop the bleeding and the group is better positioned to manage the lower volume of construction work on hand, while it has maintained sufficient capacity to participate in an anticipated improvement in the sector.”
The share price rose 2.18 percent to R20.17 Monday morning. Net asset value increased to R4,40 billion compared with R4,29bn at the end of the first half in financial 2019.
Softer results were reported by the materials division, but the infrastructure division experienced strong growth in the first half, mainly as a result of work related to the division's participation in the Renewable Energy Independent Power Producer Procurement Programme, where a number of contracts were in progress.
Revenue in the interim period fell 1.9 percent to R4.40bn, while operating profit was up 37 percent to R216.3m.
Cash generated from operations increased 41,4 percent to R414,8m. The order book increased to R9,08bn from R8,41bn at the same time last year. An interim dividend of 22 cents per share was declared.
"We are encouraged by a substantial increase in tender activity that has been observed in recent months which now needs to materialise into contract awards," he said.
BUSINESS REPORT ONLINE