Raubex shrugs off ‘very tough’ environment‚ shares up more than 2%

Raubex‚ a diverse construction group operating nationally‚ saw buoyant results in the interim period to August‚ despite experiencing a “very tough” operating environment. The company said on Monday that revenue rose 15.7% as operating profit climbed 9.6% to R300m. Headline earnings per share (HEPS) were up 5.5% as the group’s order book rose to a record R7.5bn. “We have delivered good results in a tough environment‚” CEO Rudolf Fourie said on Monday. “The recent earnings-enhancing acquisitions have been successfully bedded down and we are looking forward to their positive contributions in the second half of the year‚” he said. Acquisitions include a 60% share in KwaZulu-Natal-based asphalt company Shisalanga Construction for R38m. The rest was held by the empowerment owner‚ who Mr Fourie said was a “good operator”. It had also bought a 70% stake in the Empa group companies in Cape Town for R25m‚ which added specialist concrete bridge-building capacity to the group. Raubex saw better revenues in its roadworks‚ quarrying‚ infrastructure and international divisions‚ but the group’s construction unit was flat. “This is where we are feeling the pressure‚” group financial director James Gibson said on Monday. Conditions in the sector remained competitive in SA‚ with low margins‚ although there were more tenders. Mr Fourie said that higher-margin work secured in Zambia during the period would fill capacity in the construction division‚ while allowing Raubex to be more selective and secure better margins in construction work tendered for in SA. “The group’s order book is at an all-time high and our balance sheet remains very healthy‚” he said. “Looking ahead‚ we expect a continued improvement in our performance‚ while we remain on the lookout for acquisitions that fit our integrated model.” At 3.22pm shares in Raubex on the JSE were up 2.30% to R21.79.
08 Dec 2014
Author eProp Commercial Property News