Unaudited interim summary consolidated financial statements for the six months ended 31 December 2014

FINANCIAL REVIEW
Continuing operations

Revenue from continuing operations increased by 11% to R14,7 billion supported by moderate growth across all the group‟s business segments. The 9% growth achieved by the Building and civil engineering division continues to reflect the strength within local building markets. The Roads and earthworks division grew by 13%.

In Australia, revenue in dollar terms increased by 6%, consisting of an 18% increase in revenue from the building divisions being partially offset by a 39% decline in revenues from the civil businesses. In rand terms Australian revenue increased by
12%.

Revenue in respect of the continuing operations within the Construction materials segment, namely the reinforcing and ready-mix businesses, also achieved growth of 12%. In aggregate, operating profit from continuing operations before non-trading items decreased by 26% to R397 million, at a margin of 2,7%, compared to R535 million (restated to exclude the losses from discontinued operations) at a margin of 4,1% in the comparative period. The predominant reason behind the decrease in the overall margin for the current period relates to losses incurred within both Australian civil businesses as a result of three material loss-making contracts together with a particularly subdued market.

The margin of 4,4% achieved by the Building and civil engineering division is in line with that of the prior period, while the Roads and earthworks margin continues to decline (7,1% at December FY15 compared to 8,8% at December FY14) due to competitive conditions across all markets and an under-performing project in Botswana. The margin of 2,5% achieved from continuing operations within the construction materials segments shows some improvement from the 1,1% achieved at 30 June 2014 but remains lower than the 3% achieved in the comparative period.

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