Raubex determined to stay afloat and avoid fate of many road makers
Business Day speaks to Raubex CEO Rudolf Fourie
Basil Read will not be the last construction company to go under. Though the group is in business rescue — a legal avenue to avoid liquidation — its future life, if it has one, will be vastly different from its previous and, at times, proud existence. Aveng, which a few short years ago boasted a cash moat of R3bn, has thrown a desperate last dice to raise cash; Esor, a specialist in geotechnical and pipeline work, is haemorrhaging. Afrimat, until recently a resilient player in the building materials sector, has begun to post weaker earnings. And road builder Raubex, which has paid out a dividend every single year since its listing in 2007, is now scrambling to find work for its crews outside SA as projects have dried up — a lunatic situation given the country’s massive backlog in road building and maintenance. The JSE’s construction index peaked at 88.7 on October 31 2007 and it’s been downhill ever since, to the present 22.2, with former Top 40 stocks now reduced to small cap statu...
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.