Raubex posts a solid update


Raubex posts a solid update


Published Date: 2021-09-14 | Source: INCE|Community | Author: The Finance Ghost

Raubex posts a solid update

Raubex has operated in the local construction industry for 47 years. It listed in 2007, right near the top of a bull market (the right time to list).

After a revolting decade in the industry, things are looking up in the construction sector.

The company has released a trading statement, noting that headline earnings per share (HEPS) should be at least 117 cents for the six months to August, compared to a headline loss per share of 26.6 cents in the comparable period.

Critically, this result is at least double the HEPS posted in the comparable period in the 2019 calendar year. This demonstrates the strength in the sector at the moment.

The materials division contributed 67% of group operating profit in pre-Covid times and has experienced "stable operating conditions" in recent months. Diversified operations have helped to keep the ship steady.

In the construction sector, Raubex has benefitted from the supply of aggregates, asphalt and bitumen products.
In the roads and earthworks division, contract awards by SANRAL at the end of 2020 have supported the order book. Construction progress is on schedule at the Beitbridge Border Post project.

The infrastructure division has been supported by the operations in Western Australia. The Australian infrastructure theme is playing out in Murray & Roberts and Aveng as well. In South Africa, delays in renewable energy projects have impacted profitability, but Raubex is well-positioned for future roll-out of work.

This was a strong update from Raubex and the share price closed 4.33% higher in appreciation. Year-to-date, the share price is up around 36%.


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