Raubex’s full-year headline earnings drop 14%, weighed on by once-off costs
On Monday, construction group Raubex reported a 14% drop in full-year profit, as the once-off costs linked to a deal with the government in 2016 to fast track transformation in the sector, affected results.
Raubex set side R119.9m as part of the voluntary settlement with the government to prevent potential claims for damages from public entities, such as the South African National Road Agency (Sanral). A total of seven major construction companies were involved in this deal.
Headline earnings per share (HEPS) in the year to February dropped to 201.7c, from 234.4c in the year-ago period. Excluding this expense, the HEPS would have been up 14.8% to 269.1c.
Revenue was up 13.6% to R9.01bn while operating profit dropped 6.9% to R661.7m from the year-earlier period.
The results were supported by a consistent supply of bitumen, enabling a strong recovery in the road surfacing and rehabilitation division, including the asphalt operations.
Softer margins were reported in the materials division as a result of a reduction in iron ore material-handling activities in the Northern Cape, foreign-exchange losses incurred in Mozambique and inclement weather, particularly during the second half of the year, affecting commercial quarry operations in and around Gauteng.
The company declared a final dividend of 45c per share, which was up slightly on the matching period’s 42c.