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Key points from FY24 results presentation

Key points from the Capital Markets Day – Day 1

Key points from Murray & Roberts’ (MUR) FY24 results presentation

Diluted HEPS 806cps (-6.5% y-y) and DPS of 529cps (FY23: 565cps). Dividend cover maintained at 1.5x. Turnover growth +3.9% y-y with Truworths Africa down -3.2% y-y and Office UK +10.8% y-y (in GBP). GPM down from 52.5% to 52.3%, with Truworths Africa’s GPM lower at 54.9% (FY23: 55.4%) and Office higher at 47.0% (FY23: 45.2%). Expenses to sales ratio increased from 39.1% to 39.5%, with expense growth of 5.1% y-y. Operating margin increased from 18.2% in FY23 to 20.4% in FY24. This is, however, due to the reversal of previous impairments to Office UK (R1 019m; this is in EPS but excluded from HEPS). Adjusted, comparable OPM is 15.1% in FY24. Debtors book down -2.1% y-y. Doubtful debts allowance drop from 20.6% to 20.3%. Net bad debt to book 18.2% (FY23: 14.8%) Cash decreased to R298m net overdraft (FY23: R527m net cash) while gross debt increased to R1.5bn (FY23: R1.4bn). Sales in first 9 weeks of FY25 up 5.0% y-y, with TRU Africa +2.5% y-y and Office UK +11.2% y-y (in GBP).

Diluted HEPS from continuing operations improved from -71cps to -24cps. Diluted HEPS from total operations increased from -402 cps to -13cps. Revenue increased by 8.0% y-y to R13 452m, driven by 25.5% y-y growth from the PIW segment. GPM remained flat at 10.4%. OPM increased from 0.7% to 1.3%. Expenses fell by 6.3% y-y to R1 338m, while expense to sales ratio reduced from 11.5% to 9.9%. No dividend. Gross debt down 12.2% y-y to R925m, but up from R725m in December 2023. Cash generated by operating activities improved from R112m to R962m. Order book grew from R15.4bn to R17.2bn. The PIW order book decreased by 73% y-y to R0.5bn, while the Mining order book increased by 23% y-y to R16.7bn.

Key points from FY24 results presentation

Key points from FY24 results presentation

Distribution per share decreased 10% to 117.1c. Distributable income per share (DIPS) decreased 10% to 141.9c. Total cost of funding increased 16.2% due to higher interest rates. SA REIT NAV per share decreased 6.1% to R20.20. Growthpoint Investment Partners AUM grew R0.1bn to R18bn. Group SA REIT LTV increased from 40.1% to 42.3%. Group vacancies improved from 9.4% to 8.3%. Interest cover ratio decreased from 3.1X to 2.41X. Disposed of 17 properties in SA for R907.7m. Group property assets decreased from R179.8bn to R174.7bn. Offshore assets decreased from 44.3% to 40.7%. Offshore DIPS as a % of total DIPS increased 3.3% to 32.4%. Fair value adjustments for the year were negative R5.96bn.

Diluted HEPS 353.7cps (-25.1% y-y). Turnover increased by 4.6% y-y to R64.90bn, FY23 restated to R62.03bn. The weakening of the average Rand exchange rate and the acquisitions of AMCO in the United Kingdom and Right Side Up in South Africa, contributed to the increase. Expenses increased by 5.3% y-y with expense-to-sales increasing from 93.5% to 94.2%. OPM decreased by 70bps to 5.8%, mainly due to weaker performances in Supply Chain Europe and Dealerships UK. Dividend of 60cps (FY23: 80cps). Cash generated from operating activities declined from R3 153m to -R978m. A working capital outflow of R7.86bn was recorded (FY23: R4.42bn), reflecting a R6.94bn net increase in lease portfolio assets within the Fleet Division. Net finance costs increased by 20.2% to R1.21bn (FY23: R1.0bn), mainly due to increased interest rates, higher trade receivables and the funding of acquisitions.

Key points from City Lodge Hotels’ (CLH) FY24 investor lunch

Key points from Libstar’s (LBR) 1H24 results presentation

Diluted HEPS from total operations increased by 32.7% y-y from 1 514.5cps to 2 009.7cps in FY24. Revenue from continuing operations increased by 15.8% y-y to R27 526m, driven by strong a performance from the roads and earthworks segment which improved by 30.3% y-y. OPM remained flat at 4.5%. Expenses increased by 15.7% y-y to R26 306m, while expense to sales fell by 10bps to 95.6%. Dividend of 460cps. Order book R30.6bn, down from R32.6bn in June 2023 and R32.3bn in December 2023. Cash from operating activities weakened by 50.4% y-y to R664m. Long term liabilities decreased by 21.2% y-y to R258m, however, finance costs rose to R68m (+6.9% y-y).