A steady level of domestic economic activity has ensured some stability in the Group’s annuity type operations. These include construction materials and services and the contract freight operations of Unitrans. Indirectly, Murray &  Roberts has benefited from the strong performance of the domestic consumer retail sector through its investment in Unitrans and its motor retailing business. However, in its core construction markets, particularly in the international arena, Murray &  Roberts has struggled to deliver the correct balance between risk and reward. The group chief executive has devoted most of his time during the year to this sector, working to stabilise the impact of mainly historic project problems in Africa and the Middle East. He has installed fresh operations leadership where necessary and imposed greater discipline into the early risk-related activities of work identification and project procurement. The audit and risk management committee has reviewed all problem operations and projects and has endorsed the conservative project revenue recognition policy continued by management at this year-end. For the first time in many years the domestic and regional construction markets offered consistent opportunity and the Group was able to secure and implement a number of successful building projects. There has been a significant decline in the level of investment in mining and industrial expansion during the year which is reflected in the reduced order book and the decline in construction operating margins. Once a board decision had been reached on the principles of the future strategic direction of the Group, it became imperative to bring finalisation to the problems impacting on our international operations. In his report to stakeholders, the group chief executive has detailed the actions he and his executives have engaged in evaluating international markets and projects and the extent to which the forward risk profile of underperforming projects has been reduced. Strategy In accepting chairmanship of Murray &  Roberts I endorse the turnaround and transformation of the Group as a strategic imperative. Rebuilding Murray &  Roberts was introduced in July 2000 as the framework for this process over the five years to June 2005. Although there is disappointment with the performance of the Group in the year to 30 June 2004, the Board considers the financial result as a prudent reflection of the Group’s turnaround status in this fourth year of Rebuilding Murray &  Roberts. Our strategic focus has shifted gear in the year with the introduction and approval of Globalising Murray &  Roberts as the growth strategy to re-energise our non-negotiable commitment to sustainable earnings growth and value creation. Building on the fundamental principles of Rebuilding Murray &  Roberts, this strategy will extend the solid performance platform established over the past four years. Chairman Statement Dear Shareholder, It is a pleasure for me to present an overview of Murray &  Roberts in my first report to shareholders as chairman of the Group. As I reflect over the past year, the last half of which has been as chairman, I am struck by the resilience Murray & Roberts has demonstrated in difficult market conditions and by the opportunities that lie ahead. Roy Andersen