Construction survivor Raubex reported a robust set of numbers, all things considered, for its 2021 financial year-end. It operates in a niche segment of the construction sector, focusing on road and civil infrastructure. The company has benefitted from being one of a few survivors in the industry, with the 2010 Soccer World Cup infrastructure boom being a long-last memory. Demand fell off a cliff in the preceding years, with many once-powerhouses no longer in operation. Possibly the most exciting part of Raubex’s results was the increase in the order book, which ballooned to R17.2bn from R10.14bn in the prior period. This could be a sign that the promised government infrastructure spend is actually coming into play. CEO of Raubex, Rudolf Fourie, will be on the BizNews Power Hour this evening to unpack the results in greater detail. – Justin Rowe-Roberts
Raubex SENS statement:
Financial highlights:
- Revenue increased 1.3% to R8.85bn (2020: R8.73bn)
- Operating profit decreased 24.1% to R364.5m (2020: R480.5m)
- Headline earnings per share decreased 49.4% to 81.9 cents per share (2020: 161.7 cents per share) – Earnings per share decreased 37.1% to 87.4 cents per share (2020: 139.0 cents per share)
- Cash generated from operations increased 68.2% to R1.33bn (2020: R790.2m)
- Net asset value increased to R4.67bn (2020: R4.51bn)
- Capital expenditure decreased to R417.2m (2020: R581.5m)
- Order book increased to R17.12bn (2020: R10.14bn)
- Final dividend of 29 cents per share declared
Rudolf Fourie, CEO of Raubex Group, said: “The group has shown its resilience over the past year and its ability to navigate through tough industry conditions and unforeseen challenges the likes of the Covid-19 pandemic.
“South Africa’s Economic Reconstruction and Recovery Plan, which includes a substantial infrastructure build programme, is encouraging and we look forward to the roll out of this plan which will bring relief to the construction industry and create much needed jobs.
“We are further encouraged by the good recovery that was made by the group in the second half of the
year, a significant increase in tender activity and some major construction contracts that were awarded to the group.
“With the secured order book now at a record level, the group’s strong management team, supported by a healthy balance sheet, position Raubex well for future growth.”
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