transactions. The interim tax charge of R58 million (2004: R64 million including capital gains tax of R17 million on the surplus from the sale of Unitrans) is at a normalised rate of 26% (2004: 16%). Cash generated by operations before working capital changes improved 23% to R370 million (2004: R301 million) and cash outflows to fund working capital reduced by 40% to R217 million (2004: R362 million). Cash management is a focus throughout the Group, although we are experiencing a trend to delayed payment and longer final account settlement in all our contracting operations. Order Book The Construction & Engineering order book increased by 13% to R9,6 billion at 31 December 2005, up from R8,5 billion at 30 June 2005. This excludes the Group's share of the Gautrain Project estimated at R4,5 billion over a 54 month period following financial closure. The UCW Partnership (70% Murray & Roberts) is a participant in the recently announced Spoornet locomotive project for South Africa’s coal export system. The value to the Group is approximately R1,0 billion over 5 years, which amount is not recorded in the order The order book comprises Construction Middle East at R2,8 billion (R3,4 billion); Construction SADC at R2,7 billion (R1,2 billion); Mining Contracting at R3,4 billion (R3,4 billion); and Engineering at R0,7 billion (R0,4 billion). The amounts in brackets are the comparative levels at 30 June 2005. The regional composition of order book is SADC 64% (52%); Middle East 29% (39%); and Rest of World 7% (9%). Empowerment We concluded our primary BBBEE transaction on 19 December 2005 and four independent trusts have been established that own 10% of the shares of the Group and through which dividend flows will benefit designated persons. Acquisitions and Disposals The Group acquired 80% of Ocon Brick Manufacturing effective 1 August 2005 for a consideration of R96 million. The Group increased its shareholding in Clough Limited, based in Perth Australia, to 46,1% in November 2005, for a consideration of approximately R225 million, plus rights to a further 3,0% on conversion of a loan facility of AUD15 million. The Group has indicated it will raise its shareholding above 50% once Clough is delivering acceptable financial performance, which is expected by mid-2008. Criterion Equipment was sold effective 1 October 2005 to Jay & Jayendra Group in an empowerment transaction valued at R92,7 million, of which R45 million was supported through a vendor financing structure. The Scheme of Arrangement relating to the acquisition of 100% of Concor Limited and its delisting from the JSE Limited has been sanctioned by the High Court, conditional on approval by the South African competition authorities. The cost of the transaction will be approximately R330 million. International Financial Reporting Standards (IFRS) The Group adopted IFRS with effect from 1 July 2005. Appropriate detail of the changes is included in the unaudited half-year accounts to 31 December 2005 and the notes thereto. Although the impact has not been material to date, it is possible that there may be further adjustments in the full-year accounts to 30 June 2006. There has been a restatement of headline earnings for the year ended 30 June 2005, increasing performance in that year to 145 cents per share. Prospects A new performance platform has been established over the five years Rebuilding Murray & Roberts. Some aspects of the business must still show evidence of sustainable earnings growth and value creation, which remain a priority. Murray & Roberts has played a leadership role over more than 100 years in the development and construction of South Africa’s social and economic infrastructure. The renewed commitment by the South African government to invest in primary infrastructure has delivered new opportunity to the Group and its partners over the past six months. In this respect the PBMR Nuclear Demonstration Plant, Vresap Pipeline, Gautrain Rapid Rail Link, Coalink Locomotives and Eskom's expansion program are five initiatives in which the Group is contracted to play a key partnership role. In total these projects and programs represent more than R100 billion of gross fixed capital formation over the next five to ten years. The charge of R95 million to the income statement relating to the granting of shares to almost 14 000 employees in terms of the Group’s BBBEE transaction has the effect of reducing headline earnings by 23 cents per share. Excluding this, headline earnings per share should show real growth for the full year to 30 June 2006 over the IFRS restated comparative. Roy Andersen Brian Bruce Roger Rees Chairman of the Board Group Chief Executive Group Financial Director Bedfordview 2 March 2006 NOTICE TO SHAREHOLDERS Declaration of interim ordinary dividend (No. 108) Notice is hereby given that an interim ordinary dividend No. 108 of 20 cents per share (2005: 15 cents per share) in respect of the financial year ending 30 June 2006 has been declared payable to shareholders recorded in the register at the close of business on Thursday 13 April 2006. Salient dates Last day to trade cum the dividend

Thursday 6 April 2006

Trading dividend commences

Friday 7 April 2006

Record date  

Thursday 13 April 2006

Payment date

Tuesday 18 April 2006

Share certificates may not be dematerialised or re-materialised between Friday 7 April 2006 and Thursday 13 April 2006 both days inclusive. On Tuesday 18 April 2006 the interim dividend will be electronically transferred to the bank accounts of all certificated shareholders where this facility is available. Where electronic fund transfer is not available or desired cheques dated 18 April 2006 will be posted on that date. Shareholders  who  have  dematerialised  their  share  certificates  will  have  their  accounts  at  their  CSDP or broker credited on Tuesday 18 April 2006. By order of the Board SF Linford Company Secretary Bedfordview 2 March 2006