Murray & Roberts maintains profits

Engineering and contracting group, Murray & Roberts, has reported a substantial increase in revenue for the first fiscal half, with a 23 percent growth compared to the same period last year. Henry Laas, the Group CEO of Murray & Roberts, attributes this growth to the order book secured over the previous financial year, particularly in the ERI platform operating out of Australia and the US. The order book, valued at a significant 61.1 billion Rans, is translating into revenue for the current financial year, driving the growth in the engineering resources and infrastructure business. Laas expresses confidence in sustaining this growth over the next three years, despite global challenges such as geopolitical uncertainties, rising inflation, and the overall state of the economies worldwide. The company's optimism is fueled by the successful order book buildup and the anticipation of securing a number of large opportunities in the near future. The breakdown of the order book reveals that the energy resources and infrastructure business hold the largest share at around 38 billion Rans, followed by the mining sector at 22 billion Rans. While the power industrial and water business in South Africa currently has a smaller order book, Murray & Roberts is optimistic about its growth potential, particularly in the local renewable energy sector. Despite setting an operating income margin target of three to five percent, the company fell short of achieving this target in the first half of the financial year, primarily due to the lingering impact of COVID-19 on operational efficiencies. Laas acknowledges the challenges faced during the pandemic, including labor mobilization and supply chain disruptions. The disruption in supply chains, caused by bottlenecks and shipping delays, is the current hurdle for the company to overcome. While navigating these challenges, Murray & Roberts remains focused on managing the supply chain disruptions to the best of their ability. When asked about the potential impact of rising interest rates on the business, Laas remains optimistic, stating that the projects are adequately funded and that interest charges are not expected to pose a significant threat in the near future.