RAUBEX Group performed strongly in the six months to August 31, while the roads, infrastructure and construction materials group’s order books remained robust, chief executive Rudolph Fourie said yesterday.
The group lifted headline earnings per share by 615 percent to 137 cents in the six months to August compared with 26.6c per share headline loss at the same time a year before.
Revenue increased 52 percent to R5.99 billion. Operating profit shot up to R435.2 million from R21.7m. But Fourie said these results were not strictly comparable because of the impact of the pandemic in the first half of 2020.
Headline earnings a share, however, when compared with the second half of the 2020 financial year, which was a more normal trading period, were nonetheless up by 26 percent, he said in an online presentation.
Cash generated from operations fell 66.5 percent to R239.9m in the interim period. Net asset value increased to R4.87bn (R4.51bn). The order book increased sharply to R16.55bn from R11.74bn.
An interim dividend of 47c per share was declared, well up from 21c at the end of interim 2020.
Fourie said the strong results were from solid performances by all three divisions.
The group had also successfully established a sustainable and diversified revenue stream from operations in Australia, which were performing well, he said.
The upgrade of the Beitbridge border post, the group’s biggest project, achieved its first milestone on time.
He said the government’s commitment to infrastructure spend and the high levels of tender activity the group was experiencing was encouraging.
“The secured order book, strong management team, supported by a healthy balance sheet, position us well to take advantage of the high level of tender activity in the market,” he said.
The outflow of cash was mainly due to the increased working capital demand as execution on the record order book started during the period, and activity on the Beitbridge border post project was now in full swing.
Borrowings decreased 13.3 percent to R689.8m, mostly as a result of the restructure of Burma Plant Hire, where outstanding borrowings of R110m for plant and equipment were settled.
The materials division, comprising quarries, contract crushing and materials handling and processing services for the mining industry, contributed 43.4 percent of group operating profit.
The division was supported by good demand for aggregates, while contract crushing for the construction sector experienced weak demand, but was expected to improve in the second half.
Operating profit for the division increased 77.4 percent to R188.8m.
Margins in the roads and earthworks division were still under pressure as the execution on new projects had a slow start to the year.
The secured order book provided a good base load of work over the medium term, which would enable a search for higher margin opportunities going forward.
Operating profit in this division increased 276.4 percent to R116.5m from a R66.1m operating loss.
The infrastructure division reported a strong performance from the commercial building and housing operations.
In South Africa, the renewable energy sector had a slow start due to a delay in the award of the Renewable Energy IPP Risk Mitigation round.
Operating profit for this division increased 794 percent to R129.8m.
The international operations, which consist of materials supply and mining services as well as construction activities in Botswana, Mozambique, Namibia, Zambia and Zimbabwe, as well as in Western Australia, reported operating profit of R126.7m, well up from R0.5m in the first half of 2020.
Fourie said the current unsecured contract opportunities which had been tendered on by the group and were still pending adjudication, were both significant in value and encouraging from a market perspective.
BUSINESS REPORT ONLINE