Publications
Partners
Johannesburg - Shares of South Africa’s Group Five [JSE:GBF] dived more than 2% after the company said it expected its diluted headline earnings per share for the 2011 financial year to be between 45% and 55% lower than last year.
Headline earnings per share were at 561 cents in 2010.
The construction services group said that while the industry had solid medium- and long-term prospects in targeted regions and sectors, conditions in the short term are worse than previously envisaged.
Its shares were down 2.66% to R29.65, outperformed by the Johannesburg All Share [JSE:J203] index which is down 0.46%.
In a trading update, Group Five said the slowdown in the construction sector in the last two years had worsened trading conditions in the construction and materials markets in which it operated.
"This has negatively impacted performance in the current year as the group still benefited in the 2010 financial year from the majority of large public sector contracts awarded ahead of the World Cup. In the interim, to mitigate this environment to some extent, the group has successfully re-entered targeted African markets where it has an established track record," it said.
It said that in the second half of the financial year the group incurred a number of once-off costs which negatively affected headline earnings.
Headline earnings per share were at 561 cents in 2010.
The construction services group said that while the industry had solid medium- and long-term prospects in targeted regions and sectors, conditions in the short term are worse than previously envisaged.
Its shares were down 2.66% to R29.65, outperformed by the Johannesburg All Share [JSE:J203] index which is down 0.46%.
In a trading update, Group Five said the slowdown in the construction sector in the last two years had worsened trading conditions in the construction and materials markets in which it operated.
"This has negatively impacted performance in the current year as the group still benefited in the 2010 financial year from the majority of large public sector contracts awarded ahead of the World Cup. In the interim, to mitigate this environment to some extent, the group has successfully re-entered targeted African markets where it has an established track record," it said.
It said that in the second half of the financial year the group incurred a number of once-off costs which negatively affected headline earnings.
