Raubex reports post-Covid rebound
Listed infrastructure and construction group, Raubex, saw a massive rebound for this yearly performance period. Revenue jumped from 8 to 11 million, to the tune of a 30 per cent increase and shareholders will be pleased by a dividend that was almost doubled. CNBC Africa spoke to Rudolf Fourie, CEO of Raubex Group for more.
Mon, 16 May 2022 17:20:46 GMT
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AI Generated Summary
- Raubex Group reports a significant 30% increase in revenue, showcasing a remarkable post-Covid rebound in its yearly performance.
- The road works and earthwork segment experiences a notable 35% revenue growth and a substantial margin improvement, driven by successful project execution.
- CEO Rudolf Fourie expresses optimism about sustaining the current performance levels, citing a secured order book, promising tender activities, and a positive outlook for the construction sector.
Touted as a success story amidst the challenging backdrop of the COVID-19 pandemic, Raubex Group, a prominent infrastructure and construction company, has reported a significant rebound in its yearly performance. The company saw a remarkable increase in revenue from 8 to 11 million, marking an impressive 30% rise. This positive financial outcome has left shareholders delighted, especially with a nearly doubled dividend. CNBC Africa recently caught up with Rudolf Fourie, the CEO of Raubex Group, to delve deeper into the factors behind this exceptional performance and gain insights into the company's future outlook.
One of the standout aspects of Raubex Group's recent success lies in its divisional performance, particularly in the road works and earthwork segment. The segment not only witnessed a substantial 35% increase in revenue but also experienced a significant boost in margins, which soared from 0.3% to 5.4%. Fourie attributed this impressive performance to securing major projects, including a significant roadwork contract worth 6.4 billion rand. The successful execution of these projects has played a pivotal role in driving the company's positive results, further augmented by the progress made in their flagship project, valued at 2.4 billion rand.
Looking ahead, Fourie expressed optimism about sustaining this level of performance, highlighting the secured order book for the current year as a key factor. With a promising pipeline of tender activities and anticipated work awards, Raubex Group is well-positioned to maintain and potentially surpass its current success in the coming years. The construction sector's robust activity and the favorable outlook for project awards further bolster the company's confidence in delivering continued growth and profitability.
However, the CEO also addressed concerns regarding escalating metal prices, which have seen steep increases due to various factors, including heightened demand from China and the impacts of the Russia-Ukraine conflict. Fourie acknowledged the challenges posed by rising metal prices and indicated a cautious approach towards large steel projects to mitigate potential risks associated with price fluctuations. The geopolitical tensions resulting from the conflict have influenced commodity prices, presenting both challenges and opportunities for Raubex Group's operations.
On a personal note, Fourie reflected on his remarkable 25-year journey at Raubex Group, including 12 years at the helm as the group CEO. As he prepares to transition to the role of deputy chair on the board, Fourie expressed excitement about the upcoming chapter and his continued involvement in the business. The announcement of Felicia Mabuza-Suttle as the first female CEO and the first black female CEO in the sector underscores the company's commitment to diversity and inclusivity. With a strong succession plan in place, the seamless transfer of leadership to Felicia and Doug Lone, who assumes the role of chief operating officer, signals continuity and stability for Raubex Group's future endeavors.
In conclusion, Raubex Group's exemplary financial performance, strategic project execution, and leadership transition underscore the company's resilience and forward-looking approach in navigating the ever-evolving construction and infrastructure landscape. With a focus on sustainable growth, innovation, and inclusivity, Raubex Group is poised to build on its recent success and drive long-term value for its stakeholders.