Murray & Roberts: Limping along, but surviving
Murray & Roberts, though limping, has survived, thanks to its diversification – both geographically and in its service offering
It has been a tough trading environment for SA listed construction companies, which have been struggling since the 2010 Soccer World Cup. The industry has already suffered a few casualties.Murray & Roberts (M&R), though limping, has survived, thanks to its diversification — both geographically and in its service offering.M&R’s interim results showed headline earnings down 4% (well within management’s guidance of -2% to -16%). Subsequently, M&R has released three Covid-19 updates indicating just how fluid the situation is, and how difficult it is to manage through this crisis.Its last reported order book was split 74% across international and 26% in Southern Africa. This global reach is a positive for the group as it gives the counter rand hedge qualities and provides project diversity. This diversity will help to limit some of the negative impact from Covid-19. Most of its projects in SA were shut down under level 5 lockdown, but its global business has had at least limited trading....
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