The share worth of JSE-listed development and engineering firm Murray & Roberts (M&R) dropped by 35% to R4.28 on Monday morning, following its cautionary announcement predicting a 100% decline in its monetary outcomes for the six months interval ending on 31 December 2022.
In line with the Sens assertion issued on Monday, the disruption in provide chain supply and delay in venture milestone funds proceed to stick with a number of tasks progressing extra slowly than anticipated. This, it notes, is subsequently affecting margin and dealing capital necessities.
The corporate says margin deterioration was just lately recorded on the Traveler venture in the US and the Waitsia venture in Australia, each of which it expects will probably be near completion by the tip of the 2023 monetary yr.
The group beforehand disclosed in its stakeholder report that the supply of its order e-book is more and more being disrupted within the present atmosphere and that elevated ranges of working capital are required to handle the dislocation in venture money flows.
“When it comes to the JSE’s listings necessities, firms are required to publish a buying and selling assertion as quickly as they’re glad {that a} cheap diploma of certainty exists that the monetary outcomes for the subsequent reporting interval will differ by at the very least 20% from the earlier and corresponding reporting interval,” signifies the corporate.
“The group has an affordable diploma of certainty that the margin deterioration described above will end result within the monetary outcomes for the six month interval ending 31 December 2022, to be at the very least 100% down on the earlier and corresponding reporting interval.”
It says, nevertheless, that its board of administrators doesn’t have cheap certainty on the earnings per share ranges however will publish an up to date buying and selling assertion as soon as there’s extra certainty.
The group notes that its working capital necessities are particularly extreme in its Vitality, Assets, and Infrastructure enterprise platform. It says it’s at present reviewing its strategic choices to handle the platform’s near-term working capital wants.
“The developments described above referring to the continuing disruption to order e-book supply might have a cloth impact on the worth of the corporate’s securities,” it provides.
“Accordingly, shareholders are suggested to train warning when dealing within the firm’s securities till an extra announcement is made.”
Nondumiso Lehutso is a Moneyweb intern.
