adminlength transactions, and gain or loss arising from a change in the fair value of investment property is recognised in profit or loss.
The company’s total revenue amounted to US$43 million, which was a 20,7 percent increase compared to the same period last year.
The US$1,6 million profit before tax included fair value gains to the tune of US$1,3 million in the company’s investment property portfolio, which shows that its operating margins were comparatively lower compared to the same period last year.
Murray & Roberts chairman Mr Paddy Zhanda said business activity was particularly depressed during the second half of the year.
“Against the background of a commendable performance during the first half of the year, there was lower business activity during the latter part of the year, especially in the manufacturing division. Financial performance during the second half of the year was also negatively impacted by extraordinary expenses related to provisions for restructuring, certain doubtful receivables and slow moving inventories made in the manufacturing division, totalling US$783 856,” he said.
In respect of its operations, the manufacturing division recorded revenue and loss before tax of US$16,1 million and US$98 627, respectively. The division’s volumes traded stood at 4 495 tonnes, which was 9,5 percent down from the similar period last year.
Management attributed the depressed performance to constrained demand, especially in the second half of the year.
Capacity utilisation for the division was slightly lower at 45 percent compared to 46 percent last year. The contracting division recorded revenue and profit before tax of US$26,8 million and US$530 837 respectively, boosted by the release of US$432 411 following the conclusion of the legal process on the New British Embassy project during the period.
In terms of its future strategy, the company says it will focus more on the efficient management and deployment of working capital in order to reduce dependence on short-term debt.
Finally, the company’s corporate division — which houses its treasury operations and the property portfolio — recorded rental revenue of US$177 609 and profit after tax of US$1,2 million, resulting mainly from the US$1,3 million revaluation gains recorded in the company’s investment property portfolio.
The period under review saw the successful conclusion of a transaction that saw the disposal of Murray & Roberts Ltd of South Africa’s 46,46 percent stake to a local consortium, Zumbani Capital (Pvt) Ltd.
Online Reporter