Loading...
See More

Group 5 cuts jobs, warns of tough times

Nov 29 2011 16:19 Reuters

Related Articles

Group Five profit plunge disappoints

Group Five revises earnings forecast

G5 consortium wins R10bn toll roads bid

State to review PPPs

SA eyes R1-trillion nuclear tender

Bids roll in for renewable energy plan

 
Johannesburg - South Africa’s fourth-largest construction firm Group Five slashed 500 jobs in the past five months and has downgraded its 2012 trading outlook, reflecting heavy dependence on the slumping domestic construction market.

Group Five, which employs about 12 000 people, said it retrenched the 500 - including contract workers - since June and could cut more in the coming months, although the numbers were likely to be insignificant.

South African construction companies, once the darlings of investors in the building boom leading up to the 2010 Soccer World Cup, have been plunged into oblivion as they struggle to find replacement work elsewhere.

Group Five CEO Mike Upton said although the group wanted to have “a firm home base”, it had plans in place to ensure its order book is split 60:40 South Africa work and cross-border work, respectively.

Group Five’s R9bn  worth of secured work as of October is heavily weighted in favour of South Africa at 66% and the rest from neighbouring southern Africa countries, the Middle East and Central and West Africa, it said.

The company, which operates in 22 countries outside South Africa, said it was bidding for work in countries that include Qatar, Nigeria, the Democratic Republic of Congo, Poland and Bulgaria.

Upton said the company has identified R138bn worth of new work that it could bid for, 10% of which it has been selected for as a preferred bidder. The potential job is made up of R57bn offshore and R81bn domestic.

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

sponsored content
Sanral arrogant and evasive - JPSA 2014-09-04 09:13

Lawyers representing Justice Project SA have labelled responses they received from Sanral's legal team relating to e-tolls as surprisingly arrogant and evasive.

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...