Raubex Group Limited, a leading player in the South African construction and infrastructure sector, has released a voluntary trading update for the year ending 29 February 2024. Despite facing challenging market conditions, the company remains optimistic about its performance, projecting a potential increase in earnings per share (EPS) and headline earnings per share (HEPS) compared to the previous corresponding period.
Market Challenges and Resilience
In the face of ongoing economic constraints, Raubex has maintained its resilience, navigating through a tough market landscape. The company had previously acknowledged the tough trading conditions during its interim results for the six months ending 31 August 2023. However, there has been a notable uptick in tender activity towards the latter part of the financial year, which Raubex has capitalized on. This has led to the company securing tender awards across its four divisions from a diverse client base.
Solid Order Book Position
Despite the prevailing macroeconomic challenges, Raubex has managed to maintain a solid order book position. The tender awards received have contributed significantly to this, providing stability and a positive outlook for the company. The completion of the Beitbridge Border Post Project early in FY2024, a significant contributor to the prior year’s financial results, did not hinder Raubex’s performance. Instead, the company has demonstrated commendable performance even without the project’s contributions.
Financial Projections
Raubex anticipates that its EPS and HEPS for the year ending 29 February 2024 will show an increase of between 0% and 10% compared to the previous corresponding period. The following table outlines the projected ranges:
| Metric | Expected Range |
|---|---|
| Earnings Per Share (EPS) | 391.1 cents – 430.2 cents |
| Headline Earnings Per Share (HEPS) | 392.8 cents – 432.1 cents |
Future Outlook and Further Statements
While these projections showcase a positive outlook for Raubex, it’s important to note that the financial information provided in this announcement has not been reviewed or reported on by the company’s auditors. The company plans to issue a further trading statement once the Board has a reasonable certainty regarding the expected EPS and HEPS ranges.
Conclusion
Raubex’s voluntary trading update highlights its ability to navigate challenging market conditions and deliver commendable performance. Despite facing headwinds, the company’s strategic approach and resilience have positioned it for potential growth and continued success in the South African construction and infrastructure sector.
