SA's second-largest construction group, Construction group Murray & Roberts says it has a considerable war chest which it plans to use for further acquisitions, hinting that it would be looking offshore.

The group's war chest received a sizeable injection from the sale of its 44% stake in transport and logistics group Unitrans for close to R1bn earlier this year.

CEO Brian Bruce said in the group's latest magazine there would be further acquisitions after two sizeable deals last year, "but not all will be obvious".

The article suggests that the focus of acquisition would be outside of SA and in markets where Murray & Roberts was not already operating.

Executive director Norbert Jorek said the group was looking at potential acquisitions that could bring additional skills and capabilities to the group to help it penetrate new market segments, but also to expand its existing market.

"We are now developing the urge to expand globally," Bruce he said.

Murray & Roberts entered the oil and gas market through its acquisition of a strategic stake in Australian engineering and contracting group Clough, last year.

The group also acquired the SA's Cementation, group which undertakes construction work in the resources sector. Murray & Roberts was already involved in this market segment through subsidiary RUC.

Bruce said the that after following five years of transformation the group was leaner and poised for expansion.

He said scale had become an important ingredient of the most successful companies. Murray & Roberts ranked among the top 50 in its global market, he said.

Bruce said the group would learn from itspast lessons in the past. When Unitrans was acquired, for example, the cultural differences proved so great that no real integration ever took place, he said.

Murray & Roberts reported disappointing results earlier this week, as the legacy of problem contracts and the strong rand continued to bruise its profits. Headline earnings declined 10% to 65c a share.

Bruce said the group had also attempted to pursue projects in the fast growing residential and retail building market in SA, but failed to do so successfully as Murray & Roberts specialised in larger projects.

Bruce He said the group would look at ways in which it could participate in this sector.