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Raubex sees 28% bounce in its order book despite challenging environment

Image of Raubex CEO Felicia Msiza

Felicia Msiza

13th May 2024

By: Irma Venter

Creamer Media Senior Deputy Editor

     

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Raubex saw a 28% jump in its order book for the financial year ended February 29, to R25.55-billion, compared with R20-billion in the previous financial year.

“This is testimony to our diversified business model,” said CEO Felicia Msiza on Monday as the group released its financial results.

The infrastructure and construction materials group’s revenue for the year increased by 13.8%, to R17.43 billion, with operating profit up 20.4%, to R1.54-billion.

“This performance is especially pleasing in light of the fact that the Beitbridge Border Post Project is no longer included in the numbers, given the completion of the project in the prior financial year,” noted Msiza.

She added that the results were also “commendable, particularly given the myriad of challenges faced by the country, as well as the industries in which [Raubex] operates”.

Revenue for the Materials Handling and Mining division increased by 39.6% to R4.02-billion, mainly owing to improved production at Bauba as a result of the Kookfontein mine’s north and south pit coming online at the start of the 2024 financial year.

Operating profit jumped by a 246.8%, to R584.7-million.

The secured order book for this division was R5.05-billion – an increase of 38.2%.

“The Bauba acquisition of the 74% ownership of the Naboom Mining Company will increase the life-of-mine of the chrome and platinum group metals operations,” said Msiza. 

Revenue and operating profit for the Construction Materials division increased by 29%, to R2.42-billion, and 41.1%, to R115-million, respectively, despite rising fuel prices, high bitumen prices linked to the oil price, and ongoing loadshedding for most of the year under review.

The secured order book was R1.72-billion at the end February – up 71.7%.

Revenue in the Roads and Earthworks division decreased by 6.1% to R5.67-billion, mainly owing to the completion of the Beitbridge Border Post Project in the previous financial year.

Operating profit decreased by 35.1%, to R331.5-million.

The secured order book for this division increased by 30.2%, to R10.16-billion.

Raubex noted though that the “constant delays” in closing new tenders from the South African National Roads Agency Limited remained a concern.

The solid performance delivered by Western Australia was the main contributor to revenue growth for the Infrastructure division.

Revenue for this division increased by 17.8%, to R5.32-billion, and operating profit decreased slightly, by 1.9%, to R505.5-million.

The secured order book at the end of February increased by 13.8%, to R8.62-billion.

Revenue and operating profit for the Rest of Africa International division decreased by 49.8% to R996.8-million, and by 68% to R189.5-million, respectively.

The main reason for these sharp declines can also be attributed to the Beitbridge Border Post Project in Zimbabwe, which was completed in the previous financial year, ending February 28, 2023.

Operations in the Western Australia International division continued to perform well, with revenue increasing by 31.5% to R3.32-billion, and operating profit up 12.6% to R278.6-million.

The secured order book is R1.58-billion, down significantly from R2.37-billion in the previous financial year.

“Although the group remains cautiously optimistic about the outlook for the 2025 financial year, given this is an election year, the growth in the secured order book to  R25.55-billion is indicative of the future prospects for the group,” noted Msiza.

“Raubex continues to be well-positioned to take advantage of the various opportunities across the sectors it services, and build on its positive performance.”

 

Edited by Creamer Media Reporter

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