Murray & Roberts Makes Strides in Debt Reduction and Restructuring

  • Debt Reduction Success: Murray & Roberts slashed South African debt from R2 billion to R400 million, meeting deleveraging milestones.
  • Financial Performance Expectations: Anticipates improved basic and headline loss per share in FY2024 H1 compared to previous year.
  • Cost Rationalization Efforts: Undertook thorough review, implementing restructuring decisions for sustainable capital structure and profitability.
Published by
Lethabo Ntsoane

Murray & Roberts Holdings Limited announced significant progress in its financial restructuring efforts, as detailed in its trading statement for the six months ended December 31, 2023.

Debt Reduction and Deleveraging Plan

The company has successfully reduced its debt in South Africa to approximately R400 million, down from around R2 billion in April 2023. This accomplishment follows a concerted deleveraging plan initiated after the voluntary administration of its Australian subsidiaries in December 2022. The final milestone in this plan is to refinance the remaining debt by June 2024.

Financial Performance Expectations

In its trading statement, Murray & Roberts provided expected ranges for its financial performance in the first half of fiscal year 2024. Notably, the company anticipates an improvement in headline and basic loss per share compared to the previous year. The following table outlines the expected ranges:

Financial MetricFY2024 H1 Expected Range
Headline Loss per Share (Basic)91 – 93 cps
Headline Loss per Share (Diluted)91 – 93 cps
Loss per Share (Basic)96 – 97 cps
Loss per Share (Diluted)96 – 97 cps

Cost Rationalization and Restructuring

Murray & Roberts undertook a thorough cost review, leading to various cost rationalization and restructuring decisions. These measures are aimed at implementing a sustainable capital structure and positioning the company for long-term growth and profitability.

Publication of Interim Financial Results

The company intends to publish its interim financial results for the six months ended December 31, 2023, on the Stock Exchange News Service (SENS) on Wednesday, March 6, 2024, before 15:00 (CAT).

Outlook and Commitment to Shareholder Value

Despite the challenges faced, Murray & Roberts remains committed to creating shareholder value and excelling as an engineering and contracting services provider in the global underground mining market and selected sectors in Southern Africa.

Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted: Email: Twitter: @NtsoaneLethabo