Murray & Roberts Holdings (JSE) H2 2024 earnings summary

Executive summary

• Completed major restructuring, reducing overheads and flattening management to four direct-reporting operating companies.

• Focused on mining in Africa, the Americas, and Asia-Pacific, and on renewable energy/power infrastructure in Sub-Saharan Africa after exiting Australian operations.

• Achieved significant deleveraging, reducing South African bank debt from ZAR 2 billion in April 2023 to ZAR 409 million by June 2024.

• Improved financial performance with revenue up to ZAR 13.5 billion and EBIT from ZAR 91 million to ZAR 170 million year-over-year, returning to profitability in continuing operations.

• Net cash position of ZAR 0.4 billion at year-end, a significant swing from net debt.

Financial highlights

• Revenue increased from ZAR 12.5 billion to ZAR 13.5 billion year-over-year, an 8% rise.

• EBIT rose to ZAR 170 million (FY2023: ZAR 91 million), mainly from mining segment growth.

• Attributable loss narrowed to ZAR 138 million, with prior year loss driven by discontinued Australian operations.

• Net cash position of ZAR 0.4 billion at year-end, compared to net debt of ZAR 0.3 billion in FY2023.

• Order book grew from ZAR 15.4 billion to ZAR 17.2 billion, with 62% of FY2025 revenue already secured.

Outlook and guidance

• Revenue for FY2025 expected to be flat or increase marginally, but earnings anticipated to grow strongly.

• Targeting a return to pre-pandemic EPS levels (around ZAR 1 per share) by FY2027.

• Liquidity pressure to persist until ZAR 409 million South African debt is refinanced or repaid.

• Minimal discontinued operations costs expected in FY2025, aside from a non-cash FCTR loss upon Middle East exit.

• OptiPower positioned for growth with new solar project and Eskom panel appointments.