Thursday 1 September 2011

Murray & Roberts produced 1.5bn loss - SA Commercial Prop News

Murray & Roberts, for years SA’s number one construction group by size, produced a shocking R1.493bn headline loss in the year to June.

The company also revealed a “restricted liquidity position”, which obliges it to cut debt by returning all operations to profitability, by the sale of assets and resolving multi-million project claims. Thanks to asset sales, liquidity has been improved by R1bn since the interim to December. Last year’s headline earnings of 340c a share have been reduced to a diluted headline loss of 503c a share.

The prestigious Gautrain contract, which went to the Bombela Consortium with M&R as a 45% shaeholder, has been a particular catastrophe. Losses have been provided for, even though there is some hope that amounts might be recouped in an arbitration process that might go on until 2013.


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