M&R expects to report smaller first-half loss
Engineering and contracting services group Murray & Roberts expects its loss per share from continuing operations to narrow in the six months to December.
The JSE-listed group with a R524m market capitalisation is still picking up the pieces after suffering the loss of its Australian subsidiaries Clough and RUC Cementation Mining Contractors, which it has restated as discontinued operations.
M&R reported d on Thursday that it expected to report a headline loss per share for continuing operations of 14-19c for the first half of the 2024 financial year, an improvement on the restated 27c loss reported in the previous period. The group operates in several regions and has global expertise in shaft sinking, tunnelling, raise drilling, engineering, design and contract mining.
After the voluntary administration of the group’s Australian subsidiaries in December 2022, the company’s size was reduced.
Now M&R is focusing on the international underground mining market and the renewable energy and power infrastructure markets in Sub-Saharan Africa.
Considering its reduced earnings base, M&R had to agree on a deleveraging plan to settle its debt in SA with a consortium of local banks.
Through the plan, M&R managed to reduce its remaining debt in SA to about R400m from about R2bn in April 2023.
“The final milestone in the deleveraging plan is to refinance this remaining debt by June 2024,” the company said in a statement on Thursday.
“The group has further made meaningful progress towards implementing a sustainable capital structure, which, after a thorough cost review, necessitated several cost rationalisation and restructuring decisions, which will be detailed in the publication of the group’s interim results.”
The company’s share price was up 5% at R1.24 at close of trade on Thursday.
That was its biggest gain in a week.
THE GROUP MADE MEANINGFUL PROGRESS TOWARDS IMPLEMENTING A SUSTAINABLE CAPITAL STRUCTURE