The Group’s construction operations in South Africa and Middle East will continue to be rationalised through to year-end. The decision to
liquidate Consani Engineering brings finality to a business where sustainability is largely outside the control of the Group. The acquisition of
Cementation Mining strategic and a 29% shareholding in Clough as well as the disposal of the Group’s 44% shareholding in Unitrans have
demanded significantexecutive time throughout the reporting period. These transactions have an impact on the income statement and
balance sheet profile of the Group in the current financial year, which establishes a new framework for future development.

Regrettably, the Group suffered 6 fatalities during the period (2003: 8), one each in Egypt and Namibia and two each in mining and construction
in South Africa. The Group has sharpened its focus on health, safety and environmental compliance and has qualified for the Socially
Responsible Investment Index on the JSE Securities Exchange South Africa.

Revenue of R5,4 billion (2003: R4,2 billion) in the period are back to the levels recorded two years ago at December 2002. During this period
the SA Rand exchange rate to the US Dollar has strengthened 34% and some operations have suffered the consequences of adverse market
dynamics. The operating margin is disappointing at 3,8% (2003: 4,5%), reflecting the carry-over order book at breakeven margin notified in the
annual report and other factors highlighted under operations.

Attributable earnings are up 7% at R244 million (2003: R229 million). This includes a profit on the disposal of Unitrans and an impairment against
Consani Engineering. Net financing costs of R9 million (2003: income of R15 million) and an interim tax charge of R60 million (2003: R30 million)
including capital gains tax of R17 million on the surplus from the Unitrans sale, have increased the charge against earnings compared with the
previous corresponding period. This has resulted in a decline in fully diluted headline earnings to 65 cents per share (2003: 72 cents per
share). It is anticipated that a normalised tax rate of 29% will apply for the second half of the year.

Operating cash outflow is R106 million compared to an inflow of R94 million in the previous corresponding period. Working capital increased by
R362 million (2003: R89 million) of which R176 million was in the Steel Cluster, which is budgeted to be realised by year-end.

The directors have declared an interim ordinary dividend of 15 cents per share in respect of the half-year ended 31 December 2004. Following
the disposal of Unitrans, dividend cover has been changed to three times earnings excluding associates. Attention is drawn to the formal
dividend announcement contained herein.

Order Book
The Group’s project order book stood at R8,5 billion at 31 December 2004, up 70% in the first six months of the year and 112% on the level at
31 December 2003. Of this order book R2,3 billion relates to the Group’s 40% share of Dubai International Airport, more than 90% of which will
be realised in the 2006 and 2007 financial years.

The order book comprises Construction Middle East at R3,2 billion (R750 million); Construction SADC at R1,75 billion (R1,55 billion); Mining
Contracting at R3,1 billion (R2,4 billion); and Engineering at R450 million (R300 million). The amounts in brackets are the comparative levels at 30
June 2004.

The regional composition of the order book is SADC 53% (73%); Middle East 37% (15%); and Rest of World 10% (12%). More information on
the Clough order book is given later in this report.

Quality construction opportunity in South Africa remains the Group’s primary order book challenge. Building margins are too low relative to
performance risk and there is currently insufficient higher margin engineering-related work.

Operations
Construction operations in South Africa and Middle East continue to struggle for performance in markets where abundant opportunity has not
translated into profitable work. New entrants at all levels of client, developer, professional and contractor; the psychology of lowest price; and
industry-wide deficits in leadership, management, supervision and skills have combined to make conventional construction ever more risky and
volatile. The Group recently conducted an independent study to benchmark global best practice in the contracting sector, and is working to
reframe its procurement philosophy and risk procedures accordingly.