Raubex Group Limited, a stalwart in the South African construction and infrastructure sector, has showcased its resilience and growth as it unveils its unaudited interim results for the six months ending on August 31, 2023. Despite facing a challenging macroeconomic environment, the company has reported robust financial performance, underlining its ability to adapt and thrive in turbulent times.
Financial Triumph
Revenue Surge: Raubex reported a notable 14.5% increase in revenue, reaching a substantial R8.45 billion for the first half of 2023. This growth reflects the company’s strategic approach and its diversified portfolio, which has allowed it to weather economic uncertainties.
Operating Profit Soars: Operating profit also witnessed a commendable 14.2% increase, climbing to R628.4 million in the same period. This is a testament to the company’s operational efficiency and ability to capitalize on opportunities.
Earnings Per Share (EPS): Shareholders will be pleased to note that both headline earnings per share and earnings per share have surged. Headline earnings per share increased by an impressive 19.4%, reaching 189.8 cents per share. Similarly, earnings per share increased by 19.3%, rising to 193.0 cents per share. These figures underline the company’s commitment to delivering value to its shareholders.
Solid Cash Generation: The company’s cash generation from operations soared by 23.6%, reaching R728.3 million, further solidifying its financial position. This robust cash flow reflects the company’s ability to manage its resources effectively.
Strong Balance Sheet
The company’s unaudited interim results also reveal a robust balance sheet. With a net asset value of R6.05 billion, Raubex is well-positioned to support its growth and expansion strategies. The company’s resilience and prudent financial management have been instrumental in maintaining a healthy balance sheet, even amidst challenging market conditions.
Capital Expenditure and Order Book
In the first half of 2023, Raubex invested significantly in its future growth. The company’s capital expenditure reached R997.4 million, indicating its commitment to expanding its operations and taking advantage of new opportunities. Simultaneously, the order book stood at an impressive R20.29 billion, demonstrating the strong demand for the company’s services.
CEO’s Perspective
Felicia Msiza, the CEO of Raubex Group Limited, expressed her satisfaction with the company’s performance during a period marked by tough macroeconomic conditions. She attributed the company’s success to its diversified operations, resilience, and a robust strategy. Despite not having the contribution from the Beitbridge Border Post Project, the company delivered a satisfactory performance during the six months, increasing earnings through its diversified operations. Msiza emphasized the company’s long-term sustainability, driven by a healthy balance sheet and strong cash generation, which enables it to secure significant tenders in the future.
Dividend Declaration
The company’s board has declared a gross interim cash dividend from income reserves of 63 cents per share for the period ending on August 31, 2023. The dividend will be distributed with specific dates and tax considerations. Shareholders can expect the following timeline:
In terms of Dividends Tax (“DT”), the following information is relevant:
Raubex Group Limited’s income tax reference number is 9370/905/151. Shareholders are encouraged to declare their status to their Regulated Intermediary as they may qualify for a reduced DT rate or exemption.
Looking Ahead
Despite challenging economic conditions, Raubex Group Limited’s unaudited interim results for 2023 reflect a company that remains steadfast and resilient. The CEO’s confidence in the company’s strategy and the continued commitment to delivering value to shareholders is evident in the strong financial performance. Raubex is well-positioned to capitalize on future opportunities and contribute to the development of critical infrastructure in South Africa and beyond.
Conclusion
Raubex Group Limited’s interim results for the first half of 2023 are a testament to the company’s ability to thrive in challenging circumstances. The financial highlights, resilient balance sheet, and future growth prospects highlight Raubex as a prominent player in the construction and infrastructure sector. With a commitment to delivering value to shareholders, Raubex is poised for a prosperous future, contributing to the development and growth of South Africa’s infrastructure.
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