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Raubex Group Limited Interim results for the six months ended 31 August 07

Raubex Group Limited Interim results for the six months ended 31 August 07 . 06 November 2007. AGENDA. Introduction Highlights Financial and Divisional Reviews Some current projects Share Incentive Scheme Capacity Building Achieving our vision as a public company

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Raubex Group Limited Interim results for the six months ended 31 August 07

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  1. Raubex Group LimitedInterim resultsfor the six months ended 31 August 07 06 November 2007

  2. AGENDA • Introduction • Highlights • Financial and Divisional Reviews • Some current projects • Share Incentive Scheme • Capacity Building • Achieving our vision as a public company • Prospects • Conclusion • Q&A

  3. Introduction “We are pleased to present our first set of interim results as a public company. The listing was a great success and positioned us ideally to achieve our stated vision and strategy. In fact, many of the benefits associated with our public profile have already begun to materialise in the past six months and we are very upbeat about the future.” Koos Raubenheimer, CEO __________________________ Raubex is a construction company that operates throughout Southern Africa. The company listed on the Johannesburg Stock Exchange on 20 March 2007. The company has been in the business of civil engineering construction since 1974. It is a leader in road construction and rehabilitation, infrastructure development, pipelines, concrete structures and the supply of materials to the construction industry.

  4. Group Financial Highlights(period ended 31 Aug 2007) Revenues up 67,4% to R963,5 (H1 2007: R575,6m) Operating profit up 184% to R191,2m (H1 2007: R67,2m) Group operating margins of 19,8% (H1 2007: 11,6%) HEPS up 182% to 80.1 cents per share (H1 2007: 28.4 cents per share) Strong cash flow from operations up 139% to R177m (H1 2007: R74m) Capex spend of R160m Maiden interim dividend of 20 cents per share declared

  5. Group Operational Highlights • Strong growth experienced across all divisions • Operating margins improvement • Roadmac 20,2% • Raubex Construction 12% • Raumix 28,8% • Acquisitions bedded down(SPH Kundalila, National Asphalt and Milling Techniks) • Ongoing capacity expansion • Recruitment and training • Acquisitions • Continued operational efficiencies improvement • Order book grown to R2,3bn

  6. Financial Review – Income Statement * Pro forma growth

  7. Financial Review – Balance Sheet

  8. Financial Review – Cashflow

  9. Dividend declaration • Maiden interim dividend declared today • 20 cents per share • In line with the guidance provided prior to the listing • 3X cover • Relevant date: • Last day to trade cum dividend Friday, 23 November 2007 • Commence trading ex dividend Monday, 26 November 2007 • Record date Friday, 30 November 2007 • Dividend payable Monday 3 December 2007

  10. Financial Review - Segmental Analysis

  11. Divisional review - Roadmac • Revenues increased 55% to R566m [H1 2007: R364m] • Operating profit increase 115% to R114,2m [H1 2007: R53,2m] • Operating margin improved to 20,2% [H1 2007: 14,6%] • Largest contributor to Group revenues • Capex of R70m • Steady workflow and promising pipeline • National Asphalt and Milling Techniks performing well

  12. Divisional review – Raubex Construction • Revenues up 16% to R223m [H1 2007: R193m] • Operating profit increase 186% to R26,9m [H1 2007: R9,4m] • Operating margin improved to 12% [H1 2007: 4,9%] • Almost all lower margin contracts completed • Effect of new lucrative contracts being felt • Capex of R26m • Focus on greenfield type contracts

  13. Divisional review - Raumix • Revenues increased 816% to R174m [H1 2007: R19m] • Operating profit increase 987% to R50,1m [H1 2007: R4,6m] • Operating margin increase to 28,8% [H1 2007: 24,3%] • Demand driven by government infrastructure programmes • Low cost housing • Road rehabilitation • Buoyant commodity market resulting in increase demand for material handling services by mining houses • SPH Kundalila performing well

  14. Divisional review – Raubex Construction International • Operating profit increase by 12.9m to R11,1m • 5,8% of Group total • Revenues down 10% to R73,8m [H1 2007: R82,3m] • 7,6% of Group total • Operating margin improved to 15% • Cautious approach • EU funded projects (Zambia) • Good pipeline of opportunities • Manpower available to repatriate to SA if necessary

  15. Share Incentive Scheme • All resolutions approved at the AGM on 21 September 07 • Share Incentive Scheme approved • Important strategic step in light of skills shortage • Attract, retain and reward the best talent in the industry • 76 beneficiaries to date • All middle management level • 2 055 000 shares awarded • 3 years lock-in period and restraints • Important tool to build capacity • 2 945 000 shares available

  16. Capacity Building • Acquisition opportunities continually being explored • Three years apprenticeship programme • Recruited from schools and local communities • Bursaries and experiential training for tertiary education candidates • Includes diesel mechanics, foremen, civil engineers and site clerks • New recruits in 2007 - 39 • Current number of trainees - 57 • Trainees qualified since February 2007 - 10 • Projected intake in 2008 – 53

  17. Capacity Building (cont.) Two acquisitions announced today (subject to conditions precedent) • In-line with strategy • Strengthen capacity and geographical footprint • Currently in talks to finalise a further two acquisitions

  18. Some current projects N1 north of Bloemfontein – upgrading to dual carriageway and construction of six major structures – R376m N11 between Ermelo and Amersfoort – geometric upgrade – R350m Zambia – rehabilitation of route between Chisamba and Kabwe (important link between SA, the DRC and Tanzania) – R120m N3 Marianhill Toll Plaza – asphalt overlay – R115m up N3 between Heidelberg and Warden – Chip and Spray contract – R90m

  19. Achieving our vision as a public company • Rationale for listing was fourfold: • Greater access to capital markets • Attract and retain the best talents in the industry • Raise the Group’s profile to generate new opportunities • Unlock value for all shareholders • Realising tangible benefits as a public Group • Acquisitive drive • Share incentive scheme • PPP opportunities • Value creation for all shareholders

  20. Prospects • Continued demand for road construction and increased allocations • 34% or 5300km of the national road network has a remaining structural lifespan of less than 5 years(source: SA Transport Ministry). R30,2bn necessary to strengthen network • R23bn Gauteng road upgrade programme • Upgrading of existing freeways • New roads • Tollgates • 2015 completion target • Public Private Partnerships • Further selective acquisition opportunities

  21. Conclusion Strong financial performance The ability to identify, negotiate and fund value enhancing acquisitions Management continuity Middle management incentive scheme Growing order book (R2,3bn) with better margins Increasing demand for our line of work Strong performance expected in the H2 driven by continued buoyant market conditions in the South African infrastructure sector.

  22. Questions & Answers CONTACTS Raubex Group +27 (0)12 665 3226 Francois Diedrechsen College Hill +27 (0)11 447 3030 Frédéric Cornet +27 (0)83 307 8286 Jacques de Bie +27 (0)82 691 5384

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