Key message: 2H FY21 looks to have recovered well after a Covid-impacted 1H. Apart from normalised SANRAL work, Raubex is growing its infrastructure and general contracting order book.

  • Raubex released a Trading Update for FY21 (to end-Feb 2021).
  • HEPS is expected to be 45-65% lower after the impact of the Covid-lockdowns in 1H FY21.
  • 2H FY21 saw a recovery with all divisions returning to profitability. The HEPS guidance indicates 2H FY21 HEPS of 75-110c (roughly in line with 2H FY20).
  • Raubex has secured an EPC contract for the Beitbridge Border Post Project in Zimbabwe, with work already underway.
  • Raubex has successfully secured a number of significant SANRAL contracts and this has returned the group to normalised SANRAL work again after a long delay on contract awards.
  • We maintain our Target Price and recommendation.

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