Raubex flags fall in Heps, but recovery in second half bodes well

RAUBEX Group’s headline earnings per share (Heps) were expected to be between 45 and 65 percent lower in the year to February 28, but a good second-half recovery, recent infrastructure contracts and a strong order book bode well for its future.

Heps would be between 56.6 cents and 88.9c a share, versus 161.7c a share in the 2020 financial year, the group said in a trading update yesterday.

The decrease was due to the lockdowns from the Covid-19 pandemic, which had a significant impact on its results in the first half of the financial year.

Raubex’s directors said, however, that there had been a “good recovery in the second half of the year”, with all three divisions returning to profitability and operations reverting to normal efficiency.

A strong order book had been secured, supported by contract awards from Sanral, as well as a contract relating to the expansion, upgrading and improvement of the Beitbridge Border Post in Zimbabwe, where work had started swiftly and was progressing well.

A number of other contract opportunities had been tendered for in the South African construction sector, with bids under adjudication and pending award.

“The group is encouraged by South Africa’s economic reconstruction and recovery plan … and the report on progress set out in the State of the Nation address on February 11.”

The announcement of preferred bidders for the risk mitigation IPP procurement programme and the release of the request for proposals for bid window 5 of the renewable energy IPP procurement programme also demonstrate further progress towards delivery on the economic plan, they said.

The balance sheet had remained strong with a healthy cash position throughout the year.

Raubex shares closed 2.89 percent lower at R27.51 on the JSE yesterday.