Compared with the corresponding period in the previous year, a reduction in operating profit of R28 million in the Middle East (primarily a project
in Qatar) and R28 million in South Africa (primarily roads and MEI) reflect the extent of problems experienced in these construction markets.
Settlement of claims and a fair value increase of concession investments of R29 million enabled construction operations to deliver a combined
operating profit of R20 million (2003: R9 million) on revenue of R1,65 billion (2003: R1,45 billion) at a margin of 1,2% (2003: 0,6%).

In contrast, continued buoyancy in the domestic general construction economy allowed the construction services & material supplies sector to
maintain operating profits of R132 million (2003: R126 million) on revenue of R1,4 billion (2003: R1,3 billion) at a margin of 9,4% (2003: 9,7%).
Demand for all categories of construction product has been steady, and it is pleasing to report a return to performance in structural steel.

With no major industrial projects in hand, the engineering contracting & services sector disappointed with an operating loss of R2 million
(2003: profit of R45 million) on revenue of R302 million (2003: R338 million). This sector has experienced a welcome upturn in order intake
during the review period.

The acquisition of Cementation has boosted performance of the mining sector with a first half operating profit of R45 million (2003: R6 million)
on revenue of R1,3 billion (2003: R302 million) at a margin of 3,5% (2003: 2,0%). The integration of Cementation and consolidation with RUC is
progressing well with a new executive leadership team appointed to lead the process.

Revenue from the manufacture and supply of automotive and transport products, excluding Consani, are effectively hedged and operating
profits of R42 million were recorded (2003: R29 million) on higher revenue of R397 million (2003: R294 million) at a margin of 10,6% (2003:
9,9%).

Industrial services companies in the Group delivered operating profits of R21 million (2003: R14 million) on revenue of R180 million
(2003: R264 million).

Corporate costs for the period increased to R50 million (2003: R47 million) and include costs associated with the enhanced international office.
This office oversees northern hemisphere operations in Canada, Middle East and North Africa.

Cash of R576 million was enhanced by R901 million post balance sheet through the disposal of the Group’s Unitrans shares. Approximately a
third of cash resources is denominated in offshore currencies. The acquisitions of Cementation and a strategic shareholding in Clough totalling
R550 million were funded primarily from existing cash resources.

Associates
The Group acquired on 10 November 2004 a 29,3% shareholding in Clough Limited based in Perth, Australia, but holds a shared economic
interest in 64% of the company in terms of a shareholder agreement with McRae (Pty) Limited representing the Clough Family interests. Due
diligence identified a potential liability on a project in the Bass Straights, the effects of which are pre-acquisition.

This project is largely complete and Clough is off site, but the resolution of disputes remains a priority. Murray & Roberts executives are
actively supporting the resolution process and closely monitor progress.

Clough is on track under a new board and executive leadership team. The order book stood at R4,5 billion at 31 December 2004, up from R1,5
billion at 30 June 2004 with new work secured in Australia, India, Indonesia and Saudi Arabia.

Clough presented associate earnings of R4 million for the two months in the period under review. Unitrans was effectively sold on 31
December 2004 and its final contribution to the Group is associate earnings of R64 million (2003: R59 million).

Exceptional Items
Improved conditions in the domestic economy have ensured that trading in the property headlease portfolio has been held within budget
through the current period and no additional provision is necessary at this stage.

A profit of R211 million on the disposal of the Group’s 44% shareholding in Unitrans is offset by an impairment of R127 million against Consani,
a loss of R28 million on the sale of Booker Tate and an impairment of R5 million on residual goodwill.

Acquisitions, Disposals & Empowerment
The Group seeks to secure its future growth partly through acquisition of leading businesses and partnerships serving its core business
sector. This is defined as the construction economies of Southern Africa, the gulf states of Middle East, Australasia and Southeast Asia. This
includes both empowerment and indigenisation and will over time facilitate the disposal of remaining businesses no longer strategic to the
Group.

In support of the Mining Charter and broad-based black economic empowerment in South Africa, AKA Capital will acquire 26% of Murray &
Roberts Cementation, which includes the assets of Murray & Roberts RUC focused on the local market. The transaction is effective 1 January
2005.