Annual Integrated Report

2019

Gathering
Momentum

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Underground Mining + Oil & Gas + Power & Water

Engineered
Excellence
for strategic
advantage

ENGINEERED EXCELLENCE
DRIVES THE GROUP’S GROWTH, COMPETITIVENESS, RESILIENCE AND REPUTATION – THE CORNERSTONES OF SUSTAINABLE VALUE CREATION.

Engineered Excellence is a philosophy that defines our management approach at every level of the organisation. It supports our ability to offer specialist services that are clearly differentiated by excellence to clients in our chosen markets. It drives continuous improvement in project risk management and delivery, and in achieving industry-leading health, safety and environmental performance – which is as important to our clients as it is to our employees. It underpins the Group’s reputation as a well governed, values-driven and ethical organisation.

Chairman’s statement

 

Group chief executive’s and financial director’s report



CONTRACTOR
of choice

Our reputation for project excellence is an important differentiator in competitive markets.

Recognition as a contractor of choice supports our ability to secure work, negotiate fair commercial terms and engage with clients earlier in the design phase of projects. Early engagement enables us to propose solutions that mitigate risk and enhance project delivery. Disciplined management of commercial and execution risk in tendering for and delivering projects, aims to minimise losses and protect margins. This extends to ensuring that local contracting partners align to the Group’s project delivery standards including health and safety risk management, as well as risks pertaining to compliance, conduct and reputational risk management. To support enhanced competitiveness and productivity, the Group is formulating a digital strategy.


ORDER BOOK

(CONTINUING)

R46,8

BILLION
30 JUNE 2018: R30,1 billion

ATTRIBUTABLE EARNINGS

R337

MILLION
FY2018: R267 million

EBIT

R791

MILLION
FY2018: R864 million

Business platform reviews

 

Group risk management framework

Our integrated governance, risk and sustainability management frameworks support our competitiveness. The business platforms are held accountable for implementing the non-negotiable standards, systems, practices and reporting that brings Engineered Excellence to life. Risk is managed by the platforms within the Group’s defined risk tolerance framework and aligned to specific contracting principles. The lessons learnt and contracting principles schedules are regularly updated in response to specific issues. As we anticipate shifts in the Group’s opportunity and risk profile, we amend these frameworks accordingly. A well-constituted governance structure ensures effective strategic direction and oversight of the business platforms from the corporate office and the Board.

Risk management report

 


EMPLOYER
of choice

Ethical leadership, employee health and safety, and diversity and localisation are strategic priorities, enabling us to attract, retain and engage high-calibre and high-performing employees who live the Group’s Values.

The Group’s value system is a condition of the attraction, appointment and succession of quality leaders, who are ultimately responsible for implementing Group strategy. Career advancement through training and mentorship, best people practices and adherence to the Group’s diversity policy, are important aspects of our value proposition to employees. The Group is recognised for its ability to recruit locally, across the culturally diverse regions in which we operate, and provide effective training methodologies to meet the Group’s high standards for safety and productivity.


TRAINING SPEND

R105*

MILLION
FY2018: R130 million

BURSARIES AWARDED

R4,4*

MILLION
FY2018: R5,2 million

ALL BUSINESSES

CONDUCTED EMPLOYEE SURVEYS IN FY2019,

TO INFORM IMPROVEMENTS IN PEOPLE MANAGEMENT.

ONLINE
Employer of choice

* Decrease mainly attributable to reduction in headcount.


  Towards Zero Harm

    THE GROUP RECORDED NO FATALITIES AND
IMPROVED ON ITS INDUSTRY-LEADING
SAFETY PERFORMANCE DURING THE YEAR.

The Group’s safety culture has matured over the last few years, supporting our belief that Zero Harm is achievable. We continue to make health and safety improvements by better understanding our exposure risk, benchmarking ourselves against clients and peers and implementing lessons learnt from incidents and audits. We are deploying technology that lowers the baseline risk at project level and applying innovative approaches to avoid plateaus in improvement. The Group HSE framework outlines the role, responsibility and accountability of the corporate office and business platforms, and incorporates recommendations from independent experts and from ongoing risk assessments and audits.

MURRAY & ROBERTS HEALTH, SAFETY AND ENVIRONMENT FRAMEWORK

ONLINE
Health and safety performance