Raubex encouraged by current construction tender activity in SA

Construction group, Raubex, expects both its earnings per share and headline earnings per share to be higher, 90% and 100% respectively for the six months ended on 31 August 2021.

This translates to earnings per share of 123 cents and headline earnings per share of 117 cents compared to earnings per share of 64.6 cents and headline earnings per share of 58.6 cents achieved during the pre-Covid-19 comparative period (six months ended 31 August 2019).

In a SENS announcement, the company attributed the increase in its earnings due to its diversified business model allowing it to benefit from increased tender activity in the construction sector, particularly benefitting the group’s materials supply operations, including the supply of aggregates, asphalt, and bitumen products.

In its roads and earthworks division, Raubex secured a strong order book supported by significant contract awards by SANRAL towards the end of 2020. Work on all these projects commenced during the reporting period and are progressing well.

The EPC contract relating to the expansion, upgrading, and improvement of the Beitbridge Border Post Project in Zimbabwe, which is well under way, was awarded at the end of 2020, and construction progress is on schedule.

The company’s materials division, which contributed 67% of its total operating profit during the pre-Covid-19 comparative period, has experienced stable operating conditions during the first six months of the current financial year and its diversified operations (including materials handling services to the mining sector and commercial aggregate supply) have continued to support earnings.

Raubex maintained a strong balance sheet and a healthy cash balance throughout the reporting period and combined with its diversified operations, the board believes it is well positioned to participate in the increased construction activity in the South African market.

The release of the results for the six-month period ended 31 August 2021 is anticipated to be published on or about Monday, 8 November 2021.