Raubex holds on to cash as construction downturn persists
CEO Rudolf Fourie says tough times ahead will need a strong balance sheet
Listed infrastructure development group Raubex has no immediate plans to splash out even though it has cash of almost R1bn on its balance sheet. The group, which has operations in SA, Botswana, Namibia, Mozambique, Cameroon, Zambia and Western Australia, has said it expects the overall conditions in construction to remain dire as the sector reels from a slow roll-out of infrastructure spend. Amid a dearth of construction projects in SA, Raubex is hoarding cash and preferring to maintain a strong balance sheet. In the year to end-February, Raubex’s cash and cash equivalents was R962.6m. Raubex is in no hurry to spend the cash, especially not in the current unfavourable environment in which the value of many construction companies has been obliterated due to the lack of infrastructure spend.“There are always opportunities coming through. We are conservative. We are trying to protect our cash because we believe that these tough times will need a strong balance sheet,” CEO Rudolf Fo...
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