International Financial Reporting Standards (IFRS) The Group is required in terms of revised JSE Listings Requirements, to prepare its annual financial statements in accordance with IFRS with effect from 1 July 2005. SA GAAP differs in some areas from IFRS and the Group will restate its comparative financial statements appropriately and adjustments on transition to IFRS will be made retrospectively against the opening accumulated profit as at 1 July 2004. Where choice of accounting policies is available, including elective exceptions under IFRS 1: First-time Adoption of IFRS, these have been determined as appropriate for the Group. Market All markets targeted by the Group are showing signs of sustainable growth potential, although sustained levels of increased value will depend in the short-term on how clients, contractors and suppliers adjust to changed dynamics and temporary shortages of capacity. In South Africa, gross fixed capital formation (GFCF) looks set for an extended period of sustainable growth, in contrast to significant investment decline over the previous 30 years. Middle East countries in general are diversifying their regional economy, supported by a strong oil price and for them, challenging global alternatives. China in particular and Asia in general are placing increased demand into the global natural resources sector. Globalisation has brought greater awareness of human development needs, highlighting a global deficit in the supply of power, energy and water as well as education and employment opportunity. Globalising Murray & Roberts recognises the influence of these trends on the fortunes of the Group. More specifically, the competitive landscape is increasingly influenced by those companies who have benchmarked global best practice for sustainable earnings growth and value creation. The board and executive leadership of Murray & Roberts has committed the Group to this level  of achievement. Order book The Group's project order book stood at R8,5 billion at 30 June 2005 (2004: R5,0 billion including Cementation), an increase of 70% in the year. More than 67% of the order book is repeat business with known clients. The most significant award in the year was Dubai International Airport where the Group's 40% share amounts to R2,4 billion within three years. The Bombela Consortium was selected preferred bidder for the Gautrain Rapid Rail Link subsequent to year-end. The Murray & Roberts share of this project will be disclosed on contract finalisation and is significant. The Group is also preferred bidder for the Pebble Bed Modular Reactor nuclear power programme together with long-term partner SNC Lavalin. This project is planned for construction starting in 2007 and over a three year period will offer significant new opportunity to a number of companies in the Group. Thereafter and subject to licensing, the multi-unit rollout programme is expected to extend for up to 20 years. New projects have been secured since year-end in the domestic mining and construction markets and in Middle East. The Directors are further encouraged by major prospects being pursued by the Group across all its principle domestic and international markets. The long-term order book for foundry work is stable, although there is some volatility in off-take demand by customers. As preferred bidder, the Group still awaits commencement of the Spoornet locomotive replacement programme in South Africa.