Rightsizing helps Raubex return to profitability
CAPE TOWN - Raubex's share price surged 10.36 percent to R18.43 on Friday after the infrastructure and construction materials group reported that its headline earnings a share rose 183.7 percent in the year to February 29.
However, no final dividend was declared due to cash preservation measures.
Last year, the final dividend was 22 cents per share. Revenue increased 2.5 percent to R8.73 billion, while operating profit increased 132.1 percent to R480.5 million. Earnings per share increased 335.7 percent to 139c. Cash generated from operations increased 0.2 percent to R790.2m. Net asset value increased to R4.51bn from R4.33bn in 2019.
The order book increased to R10.14bn from R8.01bn. The roads and earthworks division had a secured order book of R5.46bn (2019: R3.19bn).
The materials division had an order book of R1.81bn (R1.93bn). The infrastructure division had an order book of R2.87bn (R2.89bn).
Chief executive Rudolf Fouche said there had been an improvement in results across all three of the group’s operating divisions.
“Rightsizing initiatives undertaken in the prior year have seen the roads and earthworks division return to profitability, while sufficient capacity has been maintained to participate in any improvement in the sector.”
He said they were encouraged by a substantial increase in tender activity in the second half of the past year and were hopeful that the relevant state-owned enterprises would continue to adjudicate and award these contracts as a means to stimulate the economy and create jobs following the lockdown.Capital expenditure on property, plant and equipment during the year increased 38.2 percent to R581.5m. The increase was partly due to plant requirements to service new coal mining operations in South Africa.