Murray & Roberts reports losses, faces potential winding-up

Murray & Roberts Holdings Limited (JSE:MUR) reported a significant loss before interest and taxation from continuing operations of ZAR (646) million for the six months ended 31 December 2024, a sharp contrast to the ZAR (1) million loss in the prior year. Discontinued operations, primarily Murray & Roberts Ltd (MRL), contributed further to the losses, exacerbating the Group's financial difficulties with a loss of ZAR (960) million before interest and taxation. Revenue from discontinuing operations declined by 30.9% to ZAR 4,598 million (ZAR 6,652 million in 2023). As a result, the company reported an attributable loss of ZAR (1,385) million compared to a ZAR (95) million loss in the prior period. The Board is now recommending a creditors' voluntary winding-up of the Company after the business rescue plan for MRL did not sufficiently improve financial prospects. The implementation of the Business Rescue Plan will result in the Company not having any operating companies and thus no prospect to generate cash through operations, or to recapitalise the Group. The liabilities of the Company exceed its assets resulting in the Company being commercially insolvent.