Raubex Group on Monday posted a 22.9% and 22.1% increase in earnings per share (EPS) and headline earnings per share (HEPS) respectively for the six months to August 31.

Interim EPS increased to 132.7c, from the 108c a share recorded in the comparative six months the year before.

HEPS climbed to 130.6c during the period under review from 107c apiece in the first half of the prior financial year.

“The group has delivered a solid all-round performance for the first half of the year supported by optimum conditions in terms of bitumen supply, weather and order book quality,” explained Raubex CEO Rudolf Fourie in an update to shareholders.

Profit for the half-year reached R263.3-million, up from R214.6-million achieved in the prior half-year, while operating profit was up 19.9% to R394.7-million.

The company generated revenue of R4.76-billion, a 22.5% increase on that generated in the interim period in the prior year, which Raubex attributed to a consistent supply of bitumen that enabled a strong recovery by the road surfacing and rehabilitation division.

The company’s order book was also maintained at R8.19-billion, a marginal decline on the R8.24-billion reported in the prior comparable period, with 26.2%, or R2.15-billion, of the order book for contracts in the rest of Africa, while the materials division accounted for R1.75-billion.

Raubex reported “good results” emerging from its materials division, which contributes nearly half of the group's operating profit, despite a depreciating foreign currency in Mozambique and a reduction in iron-ore materials handling activities in the Northern Cape, which had resulted in a slightly softer margin.

“The road construction division continued to execute well on its current contracts. However, very tough competitive conditions persist and management's focus is now on order book replacement,” said Fourie.

The road construction and earthworks division continued to execute on its quality order book, while the infrastructure division saw increased activity in construction works related to solar energy projects and in the affordable residential housing market.

The road construction and earthworks, infrastructure and road surfacing and rehabilitation divisions accounted for R2-billion, R1.4-billion and R3.4-billion respectively.

“The solid first-half results, diversified revenue streams and quality short-term order book position the group well for the period ahead,” he concluded.

Raubex declared a cash dividend of 45c a share for the six months to August.