IN THIS SECTION

10 year financial review
Ratios and statistics
Responsibilities of the directors for annual financial statements
Independent auditor’s report
Report of directors
Consolidated statement of financial position
Consolidated statement of financial performance
Consolidated statement of comprehensive income
Consolidated statement of changes in equity
Consolidated statement of cash flows
Accounting policies
Notes to the consolidated financial statements
Murray & Roberts Holdings Limited Financial Statements
	Statement of financial position
	Statement of financial performance
	Statement of comprehensive income
	Statement of changes in equity
	Statement of cash flows
	Notes
Annexure 1 – Major operating subsidiaries and associate companies
Annexure 2 – Interest bearing borrowings
Annexure 3 – Group segmental report

Annexure 3 - Group segmental report

The operating segments have been amended to reflect the management structure of the Group and the manner in which performance is evaluated and resources allocated as managed by the Group’s chief decision maker, as required per revised IFRS 8 Operating Segments.

In the prior year segment information reported externally was organised into four main business segments which were Construction & Engineering, Construction Materials & Services, Fabrication & Manufacture and Corporate & Properties.

In the current year, the Group’s operating segments are categorised as follows:

Construction SADC engages the large to medium sector building, civil engineering, industrial and roads & earthworks construction markets of South Africa, Botswana, Namibia and Zimbabwe and pursues selected project opportunities elsewhere in SADC.

Engineering SADC engages large scale EPCM (engineer, procure, construct and manage) and EPC (engineer, procure and construct) projects in the industrial, mining, power and marine infrastructure markets. Apart from Murray & Roberts Marine which has an Africa, Middle East and Asia focus, the primary market is South Africa and Rest of Africa.

Construction Products SADC manufacture and supply value-added construction products to the infrastructure and building markets of South Africa and the rest of SADC. Principal raw material inputs are steel, cement, aggregate, bitumen and clay.

Cementation Group comprises of four constituent companies based in Johannesburg, South Africa, North Bay in Ontario, Canada, and Kalgoorlie, West Australia, and coordinated out of London. Cementation Sudamérica was established in Santiago, Chile during the year. The Group provides specialist engineering, construction and operational services in the underground mining environment worldwide.

Middle East market is coordinated out of Dubai in the United Arab Emirates and projects are engaged through separate companies established
in each jurisdiction and in joint venture with appropriate local partners. The primary market focus is major commercial facilities and selected
infrastructure projects.

Clough is based in Perth West Australia and is focused on the upstream oil & gas sector and strategically focused on the LNG (liquid natural
gas) markets of Australasia and deep water SURF (submarine umbilical and riser flow) markets within the various oil provinces of the Atlantic
Ocean along the North and South America and Africa coastlines.

Corporate and Investments

Murray & Roberts Properties, Murray & Roberts Concessions, Toll Road Concessionaires (Tolcon) and Union Carriage & Wagon (UCW) do not naturally fall within the above clusters and have been grouped as investments, each being the responsibility of an appropriate and focused executive team.

Inter-segment transfers

Segment revenue, segment expenses and segment results include transfers between business segments and between geographical segments.
Such transfers are accounted for at arms-length prices. These transfers are eliminated on consolidation.

Segmental revenue and expenses

All segment revenue and expenses are directly attributable to the segments.

Segmental assets

All operating assets used by a segment, principally property, plant and equipment, investments, inventories, contracts-in-progress and receivables, net of allowances. Cash balances are excluded.

Segmental liabilities

All operating liabilities of a segment, principally accounts payable, subcontractor liabilities and external interest bearing borrowings.

All monetary amounts are expressed
in millions of Rands
			Construction
	Construction	Engineering	Products	Middle
2010	SADC	SADC	SADC	East
Revenue*	7 991	1 884	7 053	2 882
Earnings before exceptional
items and interest	(37)	112	611	300
Exceptional items	4	–	–	–
Earnings before interest
and taxation	(33)	112	611	300
Net interest income/
(expense)	61	26	(265)	11
Earnings before taxation	28	138	346	311
Taxation	(134)	(80)	(82)	(1)
Earnings after taxation	(106)	58	264	310
Income from equity
accounted investments	3	–	–	–
Profit from discontinued
operations	–	–	2	–
Non-controlling interest	(1)	20	(31)	–
Earnings attributable
to owners of the parent	(104)	78	235	310

All monetary amounts are expressed
in millions of Rands
			Corporate
	Cementation		and
2010	Group	Clough	Investments	Group
Revenue*	5 345	5 753	1 054	31 962
Earnings before exceptional
items and interest	447	394	(52)	1 775
Exceptional items	–	–	97	101
Earnings before interest
and taxation	447	394	45	1 876
Net interest income/
(expense)	(7)	(13)	(6)	(193)
Earnings before taxation	440	381	39	1 683
Taxation	(136)	(49)	12	(470)
Earnings after taxation	304	332	51	1 213
Income from equity
accounted investments	–	3	8	14
Profit from discontinued
operations	–	–	–	2
Non-controlling interest	–	(137)	18	(131)
Earnings attributable
to owners of the parent	304	198	77	1 098

* Revenue is disclosed net of inter-segment revenue. Inter-segmental revenue for the Group is R729 million (2009: R962 million).

All monetary amounts are expressed
in millions of Rands
			Construction
	Construction	Engineering	Products	Middle
2009	SADC	SADC	SADC	East
Revenue*	9 114	2 692	6 167	3 558
Earnings before exceptional
items and interest	524	447	675	350
Exceptional items	–	–	(12)	–
Earnings before interest
and taxation	524	447	663	350
Net interest income/
(expense)	197	71	(193)	18
Earnings before taxation	721	518	470	368
Taxation	(203)	(110)	(109)	–
Earnings after taxation	518	408	361	368
Income from equity
accounted investments	1	–	–	–
Profit from discontinued
operations	–	–	(67)	182
Non-controlling interest	(4)	(42)	(24)	(68)
Earnings attributable
to owners of the parent	515	366	270	482

All monetary amounts are expressed
in millions of Rands
			Corporate
	Cementation		and
2009	Group	Clough	Investments*	Group
Revenue*	5 962	4 185	1 006	32 684
Earnings before exceptional
items and interest	428	342	–	2 766
Exceptional items
Earnings before interest
and taxation	–	–	20	8
Net interest income/	428	342	20	2 774
(expense)	(17)	(31)	(65)	(20)
Earnings before taxation	411	311	(45)	2 754
Taxation	(141)	(19)	(30)	(612)
Earnings after taxation	270	292	(75)	2 142
Income from equity
accounted investments	–	1	–	2
Profit from discontinued
operations	–	79	–	194
Non-controlling interest	(33)	(149)	–	(320)
Earnings attributable
to owners of the parent	237	223	(75)	2 018

* Revenue is disclosed net of inter-segment revenue. Inter-segmental revenue for the Group is R729 million (2009: R962 million).

Operating segments

Construction

Engineering

Products

Middle

2010

Notes

SADC

East

Statement of financial

position

Segmental assets

3 451

1 010

3 562

3 133

Segmental liabilities

3 400

1 056

989

3 139

Investment in associate

company

–

Loans to associate

companies

–

Non-current assets

held-for-sale

–

173

480

Non-current liabilities

held-for-sale

–

155

Other information

Purchases of property,

plant and equipment

254

210

218

Purchases of other

intangible assets

–

Depreciation

201

111

Amortisation of other

intangible assets

–

Impairment of property,

plant and equipment

–

Impairment of

receivables

–

Number of employees

9 226

3 193

5 652

815

				Corporate
		Cementation		and
2010	Notes	Group	Clough	Investments*	Group
Statement of financial
position
Segmental assets	1	2 042	2 667	1 821	17 686
Segmental liabilities	2	1 329	1 453	1 682	13 048
Investment in associate
company		–	334	–	376
Loans to associate
companies		–	–	–	–
Non-current assets
held-for-sale		–	–	748	1 448
Non-current liabilities
held-for-sale		–	–	32	250
Other information
Purchases of property,
plant and equipment		193	123	52	1 093
Purchases of other
intangible assets		18	3	4	27
Depreciation		181	57	38	649
Amortisation of other
intangible assets		17	3	2	25
Impairment of property,
plant and equipment		10	–	–	16
Impairment of
receivables		2	–	4	87
Number of employees		15 810	3 212	2 505	40 413

* Corporate segmental assets include the inter-segment eliminations of group loans and receivables.

				Construction
		Construction	Engineering	Products	Middle
2009	Notes	SADC	SADC	SADC	East
Statement of
financial position
Segmental assets	1	2 790	1 167	3 750	2 521
Segmental liabilities	2	3 522	1 534	1 031	2 840
Investment in
associate company		18	–	14	–
Loans to associate
companies		–	–	–	–
Non-current assets
classified as
held-for-sale		18	–	–	–
Non-current liabilities
classified as
held-for-sale		–	–	–	–
Other information
Purchases of
property, plant and
equipment		246	298	459	120
Purchases of other
intangible assets		3	1	5	1
Depreciation		272	40	94	2
Amortisation of other
intangible assets		13	3	2	–
Impairment of
property, plant and
equipment		–	–	6	–
Impairment of
receivables		1	3	24	24
Number of
employees		9 117	3 511	6 071	891

				Corporate
		Cementation		and
2009	Notes	Group	Clough	Investments*	Group
Statement of
financial position
Segmental assets	1	1 775	4 294	2 229	18 526
Segmental liabilities	2	1 013	2 726	1 985	14 651
Investment in
associate company		–	–	–	32
Loans to associate
companies		–	–	20	20
Non-current assets
classified as
held-for-sale		–	1 795	–	1 813
Non-current liabilities
classified as
held-for-sale		–	1 042	–	1 042
Other information
Purchases of
property, plant and
equipment		283	794	136	2 336
Purchases of other
intangible assets		3	18	1	32
Depreciation		230	52	21	711
Amortisation of other
intangible assets		5	8	4	35
Impairment of
property, plant and
equipment		25	–	–	31
Impairment of
receivables		3	15	–	70
Number of
employees		12 383	4 465	2 543	38 981

* Corporate segmental assets include the inter-segment eliminations of group loans and receivables.

NOTES

		2010	2009
1.	RECONCILIATION OF SEGMENTAL ASSETS
	Total assets	21 952	23 494
	Cash and cash equivalents	(3 811)	(4 663)
	Current taxation receivable	(112)	–
	Deferred taxation assets	(343)	(305)
	Segmental assets	17 686	18 526
2.	RECONCILIATION OF SEGMENTAL LIABILITIES
	Total liabilities	14 775	16 860
	Bank overdraft	(1 245)	(1 787)
	Current taxation payable	(102)	(150)
	Deferred taxation liabiliti	(380)	(272)
	Segmental liabilities	13 048	14 651