Murray & Roberts hit by COVID-19 related impairments

The construction industry has been significantly impacted by the COVID-19 pandemic, with companies facing various challenges in maintaining operations and profitability. Murray & Roberts, a multinational engineering and construction services company, has not been immune to these effects. The CEO, Henry Laas, recently discussed the company's experience with CNBC Africa, shedding light on the financial implications and operational strategies implemented in response to the crisis. Laas highlighted the substantial impact of COVID-19 on the company, estimating a financial loss of R622 million. Despite facing significant hurdles, Laas expressed optimism about the company's resilience and emphasized the strength of its order book and strategic focus on key markets. One key point of discussion was the company's ability to secure new business and maintain margins in the current uncertain environment. Laas attributed this success to a strategic shift in business platforms and a disciplined approach to tendering. He also addressed the broader challenges facing the South African construction industry, expressing concerns about the government's ability to follow through on infrastructure promises and the lack of significant opportunities in the local market. Overall, the interview provided valuable insights into Murray & Roberts' response to the pandemic and its outlook for the future. As the construction sector continues to navigate uncertain times, companies like Murray & Roberts are poised to leverage their strengths and adapt to evolving market dynamics.