How delays in government projects led to the closure of two Raubex subsidiaries
But the construction company says the decrease in the volume of work from provincial and municipal clients has been offset by an increase in orders from private clients
Delays in government infrastructure projects have prompted Raubex to close two of its civil engineering subsidiaries. Raubex said orders from the South African National Roads Agency (Sanral) halved to R962m from R1.81bn, "due to a lack of tenders being released to the market throughout the second half of the year". "The group made the decision to discontinue the operations of L&R Civils, a company acquired in July 2012 in anticipation of the much-needed roll-out of water infrastructure projects in the country. L&R Civils reported revenue of R36.4m and a net loss after tax of R29.3m, which includes the closure costs of this business," Raubex said in its results for the year to end-February released on Monday morning. It also closed Strata Civils, which contributed revenue of R37.2m and a net loss of R17.5m. Construction orders from provincial government fell by 54% and from municipalities by 11%. "The decrease in the volume of work for Sanral as well as for provincial and municipal c...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.