Raubex says full-year earnings have plunged
The company said its ‘rightsizing‘ programme continued in the second half of the year ‘to further reduce capacity in line with the current low level of demand‘
Road-builder Raubex said on Monday that while its full-year earnings would fall by up to 80%, partly because of the dearth of construction projects in SA, its balance sheet remained “strong”. A number of builders have become financially distressed in recent years owing to the dire state of SA’s construction sector, with industry stalwarts Group Five, Basil Read and Esor currently in business rescue. “The company has continued to experience weak trading conditions in the South African construction industry during the second half of the financial year, particularly in the road construction sector,” Raubex said. This weighed on the group’s roads business and its asphalt and bitumen supply operations, it said.
PODCAST: How the construction industry contributed to its own demise...