The Group operates in the mining, energy, resources & infrastructure and power, industrial & water markets and as a result the revenue is not seasonal in nature but is influenced by the nature of the contracts that are currently in progress. Refer to commentary for a more detailed report on the performance of the different operating platforms within the Group.

The summarised consolidated financial statements for the year ended 30 June 2021 have been prepared in compliance with the Listings Requirements of the JSE Limited, the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards ("IFRS"), the minimum requirements of the International Accounting Standards ("IAS") 34, Interim Financial Reporting, SAICA Financial Reporting Guidelines as issued by the Accounting Practices Committee and the Financial Pronouncements as issued by the Financial Reporting Standards Council and the Companies Act, No. 71 of 2008 ("Act"). These summarised consolidated financial statements were compiled under the supervision of DF Grobler CA(SA), Group financial director. The directors take full responsibility for the preparation of the summarised consolidated financial statements and that the financial information has been correctly extracted from the underlying consolidated financial statements.

The accounting policies applied in the preparation of the consolidated financial statements from which the summarised financial statements were derived are in terms of IFRS and are consistent in all material respects with those applied in the audited consolidated financial statements for the year ended 30 June 2020.

The external auditors, PricewaterhouseCoopers Inc., have issued their opinion on the consolidated financial statements for the year ended 30 June 2021. The audit was conducted in accordance with International Standards on Auditing. The auditor responsible for the audit is JFM Kotzé. They have issued an unmodified audit opinion, which includes key audit matters, on the consolidated financial statements. A copy of the auditor’s report together with a copy of audited consolidated financial statements are available for inspection at the Company’s registered office. These summarised consolidated financial statements have been derived from the audited consolidated financial statements but are not audited itself.


2.1 Revenue in terms of type of good or service for the Group’s continuing operations has been recognised as follows:
R millions 30 June
30 June
Construction contracts (over time) 20 992 20 101
Sale of goods (point in time) 31 11
Rendering of services (over time) 345 420
Properties (over time) 3 3
Other revenue6 (over time) 511 303
21 882 20 838

Revenue is recognised at a point in time for the sale of goods and over time for all other categories of revenue.

6 Other revenue includes the provision of labour, information technology and other services to joint arrangements.
2.2 Revenue in terms of geographic region for the Group's continuing operations has been recognised as follows:
R millions 30 June
30 June
South Africa 4 123 4 633
Rest of Africa 301 567
Australasia & South East Asia 10 003 10 504
North America & other 7 455 5 134
21 882 20 838



R millions 30 June
30 June
Items by function    
Revenue 21 882 20 838
Cost of sales (19 340) (18 557)
Distribution and marketing expenses (20) (22)
Administration costs (2 529) (2 640)
Other operating income 547 364
Profit/(loss) before interest and taxation 540 (17)


Discontinued operations in the current year comprise the Middle East Operations, businesses included within the previous Southern Africa Infrastructure & Building Platform and the Genrec operations.

Infrastructure & Building Platform

In the current year, an investment in a Joint Venture (Forum SA Trading 284 Proprietary Limited), which holds an interest in an investment property in Mooikloof and falls into the previous Southern Africa Infrastructure & Buildings Platform, met the criteria to be classified as held for sale, in terms of IFRS 5: Non-current Assets Held for Sale and Discontinued Operations (IFRS 5). An impairment of R39 million has been recognised in the loss from discontinued operations in the current year, on classification of this investment as a non-current asset held for sale.

Middle East Operations

The Middle East Operations were classified as a discontinued operation in the 2020 financial year as a result of being abandoned, in terms of IFRS 5. Towards the end of the current financial year, the Group entered into discussions with a UAE-based investment company to dispose of its investments in Murray & Roberts Contractors (Abu Dhabi) LLC and Murray & Roberts Contractors (Middle East) LLC (part of its Middle East operations). By 30 June 2021, the discussions had progressed to an advanced stage of negotiations and as a result thereof these companies met the criteria, in terms of IFRS 5, to be classified as a disposal group held for sale. Included in the current year loss from discontinued operations is an impairment of R96 million recognised on classification of this disposal group as held for sale, and a further R39 million foreign exchange rate loss.

The transaction above recognised that on 21 July 2020, a call on two guarantees for the completed Al Mafraq project (a joint arrangement between Murray & Roberts Contractors (Abu Dhabi) LLC and a local partner) was made without cause by a client in the Middle East. On 16 January 2021, without formal notice, the call on the two guarantees issued by a Dubai-based bank was implemented by the bank. The bank debited the joint venture bank account with AED474 million (M&R share of AED153 million), placing the joint venture account into overdraft of an equivalent amount, and paid the funds over to the client. Murray & Roberts accounts for this joint arrangement as a joint operation and proportionately consolidates its share of the assets, liabilities and profit or loss of the joint operation.

The call on the two guarantees, implemented by the bank, has been treated as a non-cash flow transaction and is not included in the disclosure of cash flows from discontinued operations below.

4.1 (Loss)/profit from discontinued operations
R millions 30 June
30 June
Revenue 35 182
(Loss)/profit before interest, depreciation and amortisation (256) 19
Depreciation and amortisation
(Loss)/profit before interest and taxation (256) 19
Interest expense (1) (1)
Interest income 2 5
(Loss)/profit before taxation (255) 23
Taxation (7)
(Loss)/profit after taxation (255) 16
Income from equity accounted investments
(Loss)/profit from discontinued operations (255) 16
Attributable to:
– Owners of Murray & Roberts Holdings Limited (254) 32
– Non-controlling interests (1) (16)
(255) 16
4.2 Cash flows from discontinued operations include the following:
R millions 30 June
30 June
Cash flow from operating activities (154) (429)
Cash flow from investing activities 21
Cash flow from financing activities
Net decrease in cash and cash equivalents (154) (408)
4.3   Assets and liabilities classified as held for sale

The assets and liabilities classified as held for sale below relate mainly to the Middle East Operation.

30 June
30 June
Major classes of assets comprising the assets held for sale  
Property, plant and equipment 28
Other receivables 4
Investment in joint ventures 33
Amounts due from contract customers 744
Cash and cash equivalents 24
Major classes of liabilities comprising the assets held for sale  
Trade & other payables 159
Subcontractor liabilities 62
Short-term borrowings 551


30 June
30 June
Number of ordinary shares in issue ('000) 444 736 444 736
Reconciliation of weighted average number of shares in issue ('000)
Weighted average number of ordinary shares in issue 444 736 444 736
Less: Weighted average number of shares held by the Letsema BBBEE trusts (31 696) (31 696)
Less: Weighted average number of shares held by the subsidiary companies (19 379) (15 785)
Weighted average number of shares used for basic per share calculation 393 661 397 255
Add: Dilutive adjustment 10 246 5 725
Weighted average number of shares used for diluted per share calculation 403 907 402 980


R millions 30 June
30 June
Loss attributable to owners of Murray & Roberts Holdings Limited (180) (352)
Profit on disposal of property, plant and equipment (19) (49)
Loss on disposal of property, plant and equipment 7 1
Impairment on property, plant and equipment 12
Impairment of goodwill 63
Impairment of investment in joint venture classified as held for sale 39
Impairment of disposal group 96
Fair value gain on investment in associate (1)
Taxation effects on adjustments 3 8
Headline loss (55) (317)
Adjustments for discontinued operations:
Loss/(profit) from discontinued operations 254 (32)
Impairment of investment in joint venture classified as held for sale (39)
Impairment of disposal group (96)
Other (1)
Headline earnings/(loss) from continuing operations 63 (349)
Headline loss per share from continuing and discontinued operations (cents)  
– Diluted (14) (80)
– Basic (14) (80)
Headline earnings/(loss) per share from continuing operations (cents)
– Diluted 16 (88)
– Basic 16 (88)


R millions 30 June
30 June
At beginning of year 1 125 958
Acquisition of businesses** 8 11
Impairment loss (63)
Foreign exchange movements (31) 219
1 102 1 125

The Group tests goodwill annually for impairment or more frequently if there are indicators that goodwill might be impaired. No goodwill has been impaired in the current year.

** Business acquisitions in the current year are not considered significant.


R millions 30 June
30 June
Contracts–in–progress (cost incurred plus recognised profits, less recognised losses) 1 216 1 817
Uncertified claims and variations less payments received on account of Rnil million (FY2020: R357 million) 1 260 1 084
Amounts receivable on contracts (net of impairment provisions) 2 413 2 699
Retentions receivable (net of impairment provisions) 656 439
5 545 6 039
Amounts received in excess of work completed (4 229) (3 543)
1 316 2 496
Disclosed as:
Amounts due from contract customers 5 545 6 039
Amounts due to contract customers (4 229) (3 543)
1 316 2 496

Update on the Group's claim processes

The Group's uncertified revenue increased to R1,3 billion (FY2020: R1,1 billion). The Group remains confident that revenue recognised as uncertified will be certified and paid once attendant commercial matters have been resolved.


R millions 30 June
30 June
Other non-current assets comprise of the following:
Investment at fair value through profit or loss (note 10.1) 1 434 1 225
Intangible assets excluding goodwill 400 506
Other non-current receivables 1 20
Net investment in lease 3 76
Other investments 2 2
1 840 1 829


The Group's financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, accounts receivable and payable and interest-bearing borrowings.

The fair value of the Group's financial instruments approximate their carrying values at 30 June 2021.

R millions 30 June
30 June
Categories of financial instruments
Financial assets
Financial assets at fair value through profit or loss (level 3) 1 434 1 225
Financial assets measured at amortised cost 8 471 8 085
Financial assets measured at amortised cost – held for sale 707
Financial liabilities
Financial liabilities measured at amortised cost 7 882 7 208
Financial liabilities measured at amortised cost – held for sale 772
10.1 Financial assets designated as fair value through profit or loss
R millions 30 June
30 June
Investment in infrastructure service concession (level 3)7
At beginning of year 1 225 1 434
Realisation of investment (328)
Fair value adjustment recognised in the statement of financial performance 209 119
1 434 1 225

The fair value of the investment in Bombela Concession Company Proprietary Limited (“BCC”) has been determined using level 3 inputs per IFRS 13: Fair Value Measurement. The investment is reflected at fair value through profit or loss as the investment meets the requirements of IAS 28.18 with regards to venture capital organisations or similar entities. The fair value of the BCC is calculated using discounted cash flow models and an effective market discount rate of 11,78% (FY2020: 16,25%). The discounted cash flow models are based on forecast patronage, operating costs, inflation and other economic fundamentals, taking into consideration the operating conditions experienced in the current financial year. The future profits from the concession are governed by a contractual agreement and are principally based on inflationary increases in the patronage revenue and operating costs of the current financial year. The lower discount rate in the current financial year is believed appropriate following the reduction in the R186 bond rate and considering that the concession has less than six years of remaining operations. A decrease of 1% in the discount rate would result in an increase in the value of the concession investment of approximately R38 million (FY2020: R42 million).

Operating cost includes an operating fee that is payable to the Bombela Operating Company (Pty) Ltd ("BOC"), the company responsible for the operation and maintenance of Gautrain. The fee payable to BOC, although predictable, is subject to annual inflationary increases and is subject to review every 5th year where increases of more than inflation are considered. The next and final review is due in 2023. An annual increase of 1% in the operating fee, above inflation, would result in a decrease in the value of the concession investment of approximately R11 million (FY2020: R10 million).

Operating cost includes a Railway Usage Fee (“RUF”) which constitutes a fee for the use of the system owned by Gauteng Province. The fee is 50% of the concessionaire’s excess free cash flow above an 18% real rate of return. The fee reduces to 35% should the concessionaire comply with certain Socio Economic Development (“SED”) obligations. Historically, the SED obligations have been achieved and the valuation is based on the SED obligations being achieved. If these obligations are not achieved, the result would be a decrease in the value of the concession investment of R196 million (FY2020: R282 million).

Revenue based on patronage is underpinned by the Gauteng Province. The Patronage Guarantee is the difference between the Minimum Required Total Revenue ("MRTR") and the Concessionaire Demand Forecast ("CDF") in each month. Revenue below the CDF is a BCC risk. A 1% shortfall in patronage revenue below the CDF reduces the value of the concession investment by approximately R14 million (FY2020: R12 million). The impact of COVID-19 for financial years ending after 30 June 2021 is included in the cash flows in the discounted cash flow model. In this instance, the COVID-19 impact was based on an independent third-party assessment and analysis of the patronage over the full remaining period of the concession and the time it would take patronage to return to pre-COVID levels bearing in mind the Patronage Guarantee. It is anticipated that BCC will again achieve the CDF in the 2024 financial year. In the prior year, based on the available information at the time, it was assumed that the patronage would return to pre-COVID levels by 30 June 2021. In this regard, annual revenue, prior to COVID-19, was predictable in nature and was in excess of CDF. Furthermore, to date, the Gauteng Province has honoured its Patronage Guarantee.


As a contracting Group, Murray & Roberts is in the ordinary course of its business involved in various disputes, a number of which arise when operations and projects are closed out and finalised. Depending on the merits, disputes can translate into claims and legal proceedings, which Murray & Roberts always rigorously defends. Where Murray & Roberts, in consultation with its legal advisors and counsel, believes the claims are predicated on weak and/or spurious grounds, and Murray & Roberts has sound and strong defences, no provision is made for any such claim, and they are aggregated and disclosed as contingent liabilities. The increase in contingent liabilities relates mainly to claims in the Middle East and in the Power, Industrial & Water platform which management do not believe poses a significant risk as the potential obligations will be disputed and defended. The Board does not believe that adverse decisions in any pending proceeding or claims against the Group will have a material adverse effect on the financial condition or future of the Group. The Group does not account for any potential contingent liabilities where a back-to-back arrangement exists with the clients or subcontractors and there is a legal right to offset (R1,2 billion).

R millions 30 June
30 June
Contingent liabilities 6 812 4 782
Financial institution guarantees given to third parties 7 911 7 970


Every year, the board of directors of the Company (“Board”) considers an annual dividend, post year end. Dividends are subject to the Group’s financial position and market conditions. Considering the Group’s large and growing order book and its impact on working capital requirements, the Board has resolved not to declare a dividend for the period under review.


COVID-19 impacted earnings in the current financial year which indirectly had an impact on covenant triggers and cash flows for the year ended 30 June 2021. At 30 June 2020, covenant breaches were noted in RUC Cementation Mining Contractors (Pty) Ltd on the HSBC and EFIC facilities. In the current financial year, the EFIC facility was repaid and not renewed. The HSBC facility was renegotiated. Covenants were met on the HSBC facility at 30 June 2021.

Further covenants in the Group relate to facilities with the Toronto Dominion Bank for which the covenants were met at 30 June 2021. The call on two guarantees in the Middle East as described in note 15 in the interim financial statements at 31 December 2020 were made without cause and was not as a result of a breach of covenants. Should a covenant be at risk of breach, a waiver will be requested from the bank in advance of a breach. However, no such instances were noted in the current financial year.

Details of all debt covenants in the Group have been reflected in the table below:

Facility HSBC Facility – RUC
Cementation Mining
Contractors (Pty) Ltd
Toronto Dominion Bank
Facility – Cementation
Canada Inc.
Covenant Trigger and Proximity to being breached
  1. Tangible Net Worth:
    Requirement – minimum AUD60 million;
    Actual – AUD67 million
  2. Leverage Ratio:
    Requirement – less than 2.0 times;
    Actual – 1.04 times
  3. Debt Service Cover Ratio:
    Requirement – exceeds 1.4 times;
    Actual – 1.54 times
    Sufficient headroom deemed available for all debt covenants reflected above
  1. Current Ratio:
    Requirement – equals or exceeds 1.25:1;
    Actual – 2.37:1
  2. Debt Service Coverage Ratio: Requirement – equals or exceeds 1.25:1; Actual – 2.31:1
  3. Total Funded Debt/ EBITDA Ratio: Requirement – does not exceed 2.5:1;
    Actual – 1.55:1
  4. Concentration of EBITDA and fixed assets in Obligors: Requirement – minimum of 85%;
    Actual – 100%
  5. Capital Expenditures: Requirement – maximum of CAD40 million;
    Actual – CAD3.8 million
  6. Investments: Requirement – maximum of CAD12 million;
    Actual – CADnil
  7. Acquisitions: Requirement – maximum of CAD25 million;
    Actual – CADnil
    Sufficient headroom deemed available for all debt covenants reflected above

The Board reviews the Group's debt usage and considers the risk thereof. The Group is subject to externally imposed capital requirements in the form of financial covenants which are actively managed by the Board. The Group was able to fulfil all covenants across its various subsidiaries at 30 June 2021.


30 June
30 June
Net asset value per share (Rands) 11 13
Dividends per share (cents)(declared)


There have been no significant changes to the nature of related party transactions since 30 June 2020 or any transactions outside the normal course of business.


During July 2021, civil unrest and protest action occurred in many parts of South Africa. This was considered to be a non-adjusting event. There was no significant impact on results post year end.

During the current financial year, as documented in note 4, the Group’s exit from the Middle East is progressing and it has entered a transaction process with a
UAE-based investment company for the sale to it of the Abu Dhabi and Dubai companies. Regulatory approval is a pre-requisite for the shares to be transferred to the purchaser. The transaction is expected to be concluded by the end of September 2021. Considering the remaining project disputes in each of the two companies, the parties agreed that the consideration for sale would be a nominal amount. The post year end events as discussed above were not considered to be adjusting events and therefore the financial position and results of the Group were not deemed to be significantly affected.

The directors are not aware of any other matter or circumstance, other than noted above, arising since the end of the financial year not otherwise dealt with in the Group and Company annual financial statements which significantly affects the financial position at 30 June 2021 or the results of its operations or cash flows for the year then ended. Events that occurred after the reporting period were indicative of conditions that arose after the reporting period and did not have a material impact on the current financial year results.