Raubex resilient in the face of Covid-19 impacts
9TH NOVEMBER 2020
BY: TASNEEM BULBULIA
CREAMER MEDIA REPORTER
ARTICLE ENQUIRY SAVE THIS ARTICLE EMAIL THIS ARTICLE
FONT SIZE: -+
The six-month period to August 31 had proven the resilience of JSE-listed Raubex Group, CEO Rudolf Fourie said on November 9.
Reporting on the group’s results for the six months, he said that, despite the decrease in earnings for the period, as a result of the Covid-19-related lockdown, strict working capital management resulted in strong cash generation that exceeded the group’s expectations.
The group noted that the South African construction industry’s challenges were exacerbated by the pandemic, and, while this remains fluid and unpredictable, it is optimistic about its future prospects over the medium term.
“We are encouraged by recent contract awards and look forward to participating in the South African government’s plan to stimulate the economy through infrastructure spend,” he added.
Revenue for the period under review decreased by 10.5% year-on-year to R3.94-billion, while operating profit decreased by 90% to R21.7-million.
The group attributed this mainly to the Covid-19-related lockdown which impacted on operations in various jurisdictions.
Headline earnings a share decreased by 145.4% to a headline loss a share of 26.6c and earnings a share by 139% to a loss a share of 25.2c.
Cash generated from operations increased by 72.4% to R715-million.
Net asset value increased to R4.51-billion and capital expenditure to R167-million.
The group’s order book increased to R11.74-billion.
Raubex declared an interim dividend of 24c.