M&R’s 2014 FY earnings increase

27th August 2014 By: Leandi Kolver - Creamer Media Deputy Editor

M&R’s 2014 FY earnings increase

Construction major Murray & Roberts (M&R) on Wednesday announced a 67% increase in diluted continuing headline earnings a share to 205c for the year ended June, up from the 123c achieved during the prior year.

Diluted earnings a share amounted to 305c, up from 245c previously, while attributable earnings increased to R1.3-billion compared with R1-billion in the 2013 financial year.

Further, during the 2014 financial year, the group reported revenue of R36-billion, up from R34.2-billion in the prior year.

As at June 30, M&R’s net cash position was R1.8-billion following the acquisition of a minority shareholding in Clough for R4.4-billion in December 2013.

The group’s order book reduced to R40.9-billion during the period under review, down from R46.1-billion previously, primarily as a result of the run-off in Clough’s order book, as the nature of its work was changing from longer-term greenfield liquefied natural gas projects to shorter-term brownfield projects, M&R said.

“Over the last three years, during which it delivered its recovery and growth strategy, the group restored financial stability and returned to profitability, reorganised and re-energised the businesses, and resumed the dividend payment,” M&R said, adding that it was now proceeding with its longer-term plan to build a new strategic future.

By 2020, the group aims to be a leading international diversified project engineering, procurement and construction group in selected natural resources market sectors.

M&R has declared a gross annual dividend of 50c an ordinary share.