About this report
We are pleased to present our annual integrated report for the year ended 30 June 2017. Our integrated report presents the strategy, governance, performance and prospects of the Group, including our whollyowned multinational business platforms and the investments in which we have significant influence.
The report is aimed primarily at providers of financial capital, our employees, clients and business partners. It is also likely to be of interest to a broader stakeholder readership, as it covers our relationships and interactions with entities deemed to be material to our ability to deliver on our strategy and to our reputation in the multinational markets in which we operate.
This year’s report provides stakeholders with a snapshot of each business platform’s operating context, business plans and performance with the full business platform reviews available online. As in previous years, the printed report provides condensed financials, with the full annual financial statements available online. The close-out of the remaining projects and the office in the Middle East had a material effect on the Group’s continuing financial results in the year under review, given that, while still active, IFRS does not allow these operations to be classified as discontinued. As a result, in many instances the Group’s financial results have been reported as ‘including and excluding the Middle East’, to demonstrate that the impact experienced in FY2017 should not have any further material impact on the Group’s continuing operations.
The report also includes the most material sustainability information as it pertains to the Group strategy and the business plans of the platforms. The content index on page 1 sets out the supplementary information available online on the Group’s governance, economic, social and environmental frameworks, initiatives and performance.
Murray & Roberts defines material issues as those issues that substantively affect its ability to sustain its strategic, operational and financial performance, and those that are most likely to affect our stakeholders’ assessment of the Group’s ability to create value over time. The materiality determination process considered the top issues that the Board and management dealt with during the year, the Group’s register of strategic risks, and issues raised through engagement with analysts and investors, business associations, non-governmental organisations and other civil society structures, as well as those reported on in the media. These issues were workshopped into four broad material themes and related sub-issues for the Group, as well as issues specific to each business platform. The final step was to confirm these issues and discuss their inter-relationships with the Group executive. The material issues were referenced in preparing the report, to ensure focused and connected reporting.
Our Board committee structure, which has significant overlap in membership, and the Group organisational framework, which defines the relationships between the governing bodies and operating entities within the Group, ensure integrated strategic decision-making that encompasses all aspects that pertain to defending and creating value. Within this context, the Group sustainability framework sets out our aspiration to operate in an ethical and sustainable way, and informs our approach to integrated thinking. The framework requires that we consider the views of our stakeholders in our strategic and operational decision-making, mitigate our risks in relation to our opportunities, apply best practice corporate governance, create and sustain value for our stakeholders, and manage our impacts in line with the principle of Zero Harm. The outcomes of these inter-related objectives link back to our stakeholders and complete the cycle of accountability and inclusivity that ultimately underpins our sustainability.
ONLINE Sustainability report
The information included in this integrated report is provided in accordance with IFRS, the South African Companies Act 2008, the JSE Listings Requirements and King III. The Group complies with all 75 principles of King III. The Board has considered the requirements of King IV and is of the view that the Group materially complies with its principles and practices. A King IV application register will be published in the coming financial year on the Group’s website. We have taken cognisance of the International Integrated Reporting Council’s Integrated Reporting Framework published in December 2013, and subsequently adopted by the JSE Limited. We have applied the GRI G4 guidelines to our sustainability reporting, which across the printed and online platforms meets the GRI G4 core level.
ONLINE GRI G4 content index
Our external auditors, Deloitte & Touche, have audited the annual financial statements and provided limited assurance over selected key non-financial performance indicators. Accredited rating agency, EmpowerLogic, has verified the Group’s BBBEE rating and scorecard.
ONLINE Assurance statement
The audit & sustainability committee is responsible for overseeing the preparation and presentation of the annual integrated report and ensuring its integrity and recommended it for Board approval, obtained on 23 August 2017.