Group Five cautions about earnings

Johannesburg - Group Five [JSE:GRF] announced on Tuesday that it expects earnings per share and headline earnings per share for the year ended June 30 2016 to increase by more than 20%.

The company said this is mainly due to larger than usual fair value upwards adjustments on its service concessions based in Eastern Europe. It followed on improved expected future cash flows from these service concessions, supplemented by foreign currency gains.

The prior comparative period which ended June 30 2015, reflected earnings per share of R2.22 and headline earnings per share of R2.05 respectively.

Group Fice said once it has certainty on the actual range of the increase, a further trading statement will be released on Sens. The group's final results are expected to be released on August 15 2016. It advised shareholders that its auditors still have to review and report on the information.