MURRAY & ROBERTS HOLDINGS LIMITED - Trading Statement For The Six Months Ended 31 December 20202021/02/23 11:00:00
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Trading Statement For The Six Months Ended 31 December 2020 MURRAY & ROBERTS HOLDINGS LIMITED (Incorporated in the Republic of South Africa) Registration number 1948/029826/06 JSE Share Code: MUR ADR Code: MURZY ISIN: ZAE000073441 (“Murray & Roberts” or the “Group”) TRADING STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2020 In accordance with paragraph 3.4(b) of the Listings Requirements of the JSE, a company is required to publish a trading statement as soon as it is satisfied, with a reasonable degree of certainty that the financial results for the next period to be reported on are likely to vary by at least 20% from the previous corresponding period. Results for the six months under review to 31 December 2020 (“FY2021 H1”) were negatively affected by prolonged COVID-19 lockdown restrictions. The comparable prior six-month period to 31 December 2019 (“FY2020 H1”) ended before the outbreak of the pandemic. Hence, stakeholders are advised that when compared to FY2020 H1, Murray & Roberts will report a decline in total earnings per share and headline earnings per share for FY2021 H1. The decline in earnings is attributed to a prolonged COVID-19 restrictions impact, especially in the Mining platform, a disappointing result by the Power, Industrial & Water platform, as well as a lower fair value adjustment profit from the investment in the Bombela Concession Company. However, the Group has largely recovered from the initial and major FY2020 H2 COVID-19 restrictions impact and is well positioned to operate successfully through this short to medium term uncertainty. The Group expects to report FY2021 H1 results within the following ranges: FY2021 H1 FY2020 H1 Expected range Actual (cps loss) (cps profit) (LOSS)/PROFIT PER SHARE Basic (45) – (38) 41 Diluted (45) – (38) 40 HEADLINE (LOSS)/PROFIT PER SHARE Basic (31) – (24) 40 Diluted (31) – (24) 40 During the past three years, the Group broadened its market focus to mitigate market cyclicality and subsequently renamed its business platforms to better reflect the market sectors in which they operate as specialist contractors. This decision resulted in significant order book growth for the Group and the order book has increased to all-time high levels. As announced in the Business Update published in November 2020, results for FY2021 H2 are expected to be better than for H1, especially as adaption to declining COVID-19 restrictions increases and work commences on recently awarded contracts. Considering the Group’s record, quality order book of R60,5 billion (FY2020 R54,2 billion) and near orders of R19,9 billion (FY2020 R11,4 billion) as at December 2020, it is well positioned for a strong return to profitability in FY2022 and to achieve meaningful earnings growth in the short to medium term. This view is based on the expected growth in earnings contributions from the Energy, Resources & Infrastructure and Mining platforms. PUBLICATION OF INTERIM FINANCIAL RESULTS Murray & Roberts intends to publish its interim financial results for the six months to 31 December 2020 on SENS on Wednesday, 3 March 2021 before 17:00 (CAT). Shareholders are advised that the financial information on which this trading statement is based, has not been audited or reviewed and reported on by the Group’s external auditors. Bedfordview 23 February 2021 Sponsor The Standard Bank of South Africa Limited Date: 23-02-2021 11:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.