Finweek English Edition
Is it the end of losses?
The Murray & Roberts* results for the year ended 30 June, released on 1 September, spooked the market as the discontinued operations lost another R256m at the operating level while continuing operations made a profit of R540m. The company says this will be the last of the large losses from discontinued operations and expect the rest of the business to double profits over the next year or two. That will translate into some R1bn in profits and puts the stock on a forward P/E of around 4.5 times. This may be slow going but I still like the stock and think there is decent value at current price levels, albeit large contracts always come with risk on pricing and delays.