Engineering group Murray & Roberts (M&R), which sold its Southern African infrastructure and building units to a Southern Palace-led consortium in November, has warned that its earnings will fall by more than expected in 2017, owing to additional costs associated with four remaining building projects in the Middle East. After the Middle East business was excluded from the November disposal, the company’s board decided on an exit strategy. However, in a trading statement issued on Thursday, M&R reported that the closure would be “very costly”, owing to increased costs associated with the projects, as well as an unfavourable arbitration ruling on a project completed in 2011.
