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of US$349 837 for the half year to December as its streamlining efforts begin to pay dividends.
The group experienced a 17 percent upturn in revenue during the period compared to the parallel period to generate revenues of US$12 876 618 despite the low business activity.
In the half year to June 30 2010, the Murray and Roberts Group recorded revenue of US$20,8 million, and a loss after tax of US$718 129.
The group’s return to profitability is perhaps largely attributable to its rationalisation programme.
Last year it successfully disposed one of its two Malawi operations (Promat) at a loss of US$263 684.
The group’s Malawi operations, Caridorn and Promat had consistently registered depressed margins. The group’s regional operations were being adversely affected by inflated labour costs.
Labour laws in Malawi make labour very expensive in comparison to costs in Zimbabwe.
Net cash utilised by operations for the period was US$535 858 after the group made an investment in capital equipment of US$1 537 369.
Murray and Roberts chairman Mr Paddy Zhanda said the group had made further investments in equipment that would be operational by the end of this month.
“A further commitment for plant worth US$534 854 had also been made and delivery and commissioning is expected to be in the third quarter of the financial year,” said Mr Zhanda.
Regarding the group’s continuing operations, manufacturing division recorded revenue of US$6 354 973 and profit after tax of US$888 190.
The volumes traded of 1 946 tonnes declined by 16 percent from the same period last year as firms faced challenges with respect to ageing equipment, and water and electricity shortages.
During the same period contracting (construction) recorded revenue of US$6 521 645, an increase of 106 percent from the parallel period to register profit after tax of US$102 870.
The group said the debt on the new British Embassy building was still hanging and was being pursued through a legal process by the firm’s lawyers in London.
Recovery through this process was likely to take longer than initially anticipated.
The firm, however, remained optimistic about the outlook period.
“The order book for Murray and Roberts Construction Zimbabwe is steadily improving and the group is building the critical mass needed for sustainable growth.
“A significant number of infrastructure opportunities in our project pipeline are at various stages of finalisation,” said Murray and Roberts.