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SENSSENS 2015

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

By 23 Feb 2015No Comments

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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