Murray & Roberts Holdings Limited: Company Profile and SWOT Analysis

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Murray & Roberts Holdings Limited: Company Profile and SWOT Analysis
Murray & Roberts Holdings Limited



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Murray & Roberts Holdings Limited Financial Snapshot



Operating Performance

Fast Facts

22 Skeen Boulevard, Bedfordview, The company reported revenue of US$4,160.05

Headquarters Address

2008,South Africa million during the fiscal year 2011 (2011). The

company's revenue grew at a CAGR of 13.27%

Telephone + 27 11 4566200

during 2007–2011, with an annual growth of 9.64%

over 2010. In 2011, the company recorded an

Fax + 27 11 4552222 operating margin of -2.22%, as against 5.51% in

2010.

Website www.murrob.com



Ticker Symbol, Stock Exchange MUR, Johannesburg Stock Exchange Revenue and Margins



Number of Employees 42,422



Fiscal Year End June



Revenue (in US$ million) 4,160.05



Revenue (in ZAR million) 30,534.80









SWOT Analysis

Return on Equity

Strengths Weaknesses

The company recorded a return on equity (ROE) of -

Lack of focus on research and 41.11% for 2011, as compared to its peers, Wilson

Integrated business portfolio

development Bayly Holmes-Ovcon Limited (Ticker: WBO),

Stefanutti Stocks Holdings Limited (Ticker: SSK) and

Order backlog Limited liquidity position Aveng Limited (Ticker: AEG), which recorded ROEs

of 21.75%, 17.97% and 9.11% respectively. The

Strong top-line performance Low return on equity company reported an operating margin of -2.22% in

2011.

Opportunities Threats

Return on Equity

Credit by African Development Bank Crime in South Africa



Growth in nuclear power sector Input price volatility



Nationalization of mining industry in

Rising demand for renewable energy

South Africa









Liquidity Position



The company reported a current ratio of 1.00 in 2011,

as compared to its peers, Wilson Bayly Holmes-

Ovcon Limited, Stefanutti Stocks Holdings Limited

and Aveng Limited, which recorded current ratios of

1.23, 0.98 and 1.47 respectively. As of June 2011, the

company recorded cash and short-term investments

of worth US$318.32 million, against US$147.07

million current debt. The company reported a debt to

equity ratio of 0.56 in 2011 as compared to its peers,

Wilson Bayly Holmes-Ovcon Limited, Stefanutti

Stocks Holdings Limited and Aveng Limited, which

recorded debt to equity ratios of 0.04, 0.13 and 0.02

respectively.









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Murray & Roberts Holdings Limited - SWOT Profile Page 1

Murray & Roberts Holdings Limited



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TABLE OF CONTENTS



1 Business Analysis ................................................................................................................................... 5

1.1 Company Overview ................................................................................................................................................5

1.2 Business Description ..............................................................................................................................................5

1.3 Major Products and Services .................................................................................................................................6

2 Analysis of Key Performance Indicators ............................................................................................... 7

2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7

2.2 Key Financial Performance Indicators .................................................................................................................10

2.2.1 Revenue and Operating Profit .........................................................................................................................10

2.2.2 Asset, Liabilities and Capex .............................................................................................................................11

2.2.3 Net Debt vs. Gearing Ratio ..............................................................................................................................12

2.2.4 Solvency ..........................................................................................................................................................13

2.3 Competitive Benchmarking ..................................................................................................................................14

2.3.1 Market Capitalization .......................................................................................................................................14

2.3.2 Efficiency ..........................................................................................................................................................15

2.3.3 Capital Expenditure ..........................................................................................................................................16

2.3.4 Turnover – Inventory and Asset .......................................................................................................................17

2.3.5 Liquidity ............................................................................................................................................................18

3 Mergers & Acquisitions and Partnerships ........................................................................................... 19

3.1 M&A and Partnerships Strategy ...........................................................................................................................19

4 Recent Developments ........................................................................................................................... 21

5 SWOT Analysis ...................................................................................................................................... 22

5.1 SWOT Analysis - Overview ..................................................................................................................................22

5.2 Strengths ..............................................................................................................................................................22

5.3 Weaknesses .........................................................................................................................................................22

5.4 Opportunities ..................................................

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