Specialist engineering group Murray & Roberts (M&R) anticipates a more than 100% decline in earnings for the year ending June.
- M&R attributes the expected loss to the discontinuation of its Australian subsidiaries, Clough and RUC Cementation Mining Contractors.
- The loss of Clough and RUC resulted in M&R restating them as discontinued operations and projecting a potential basic headline loss per share of up to 76c.
- The announcement led to a 12% drop in M&R’s share price, reaching its lowest level in over five years.
- Despite the challenges faced, M&R believes it can weather the difficult period and trade through it as a core group.
- M&R operates globally, specializing in various engineering sectors such as shaft sinking, tunnelling, and contract mining.
- The loss of RUC has reduced M&R’s mining platform, leaving only two regional businesses in Africa and the Americas with combined orders valued at R14bn.
M&R aims to focus on reducing debt, increasing liquidity, and operational efficiency while delivering projects to grow earnings from a pre-pandemic baseline. The company reported a net debt position of R2bn in March but maintains a healthy order book of R16bn. Due to debt levels, M&R does not anticipate declaring a dividend this year. The annual financial results for the year ending June 30 will be released on Wednesday. Despite the challenges ahead, M&R remains optimistic about its future prospects as a group.