The Trading Statement and Cautionary Announcement released on 9 June 2004 notified the market that flat  business  conditions,  ongoing  rationalisation  in  terms  of  the  objective  of  Rebuilding  Murray  & Roberts,  continued  strength  in  the  South  African  currency  and  the  dynamics  and  timing  of  targeted major projects would result in a 15% decline in headline earnings compared to the previous year. This followed earlier indications of difficult trading conditions highlighted in the business update issued at the annual general meeting on 27 October 2003 and the prospects statement in the report on interim results for the six months ended 31 December 2003. The Group finalised the year to 30 June 2004 with fully diluted headline earnings per share down 15% to 152 cents compared with restated headline earnings per share of 178 cents for the previous year. This was achieved off a 17% decline in revenues to R8,4 billion. Operating margin declined to the target minimum of 5% reflecting the difficult trading conditions experienced by the Group in this fourth year of Rebuilding Murray &  Roberts. The Group’s balance sheet remains strong with cash reserves of R1,1 billion at year-end, down from R1,5 billion for the previous year. The Board has decided to declare a final dividend of 30 cents per share, making the total dividend for the year 45 cents per share. This is down 15% on the 52,5 cents per share awarded in the previous year. A detailed report on performance in each of the operational clusters follows later in this report and the financial director comments in his report on the annual financial statements. Chief Executive Report to Stakeholders Rebuilding  Murray  &  Roberts  has  become  synonymous  with  corporate transformation in South Africa. The process has been a challenge for all associated with its implementation and no single part of the Group has escaped the relentless pressure for change. Planned for implementation over  a  five-year  period,  this  fourth  year  has  presented  some  of  the greatest challenges to our commitment to sustainable earnings growth and value creation. Brian Bruce