Group Five cautions about expected loss | Fin24
 
In partnership with
  • Ferial Haffajee

    Why Minister of Public Enterprises Pravin Gordhan’s patriotism call to fly SAA flopped.

  • Solly Moeng

    State capture is meant to be over, but we aren't free if its beneficiaries go unpunished.

  • South African Airways

    A business rescue practitioner has been appointed to try and save the struggling flag carrier.

Loading...

Group Five cautions about expected loss

Feb 09 2017 17:45

Johannesburg - Group Five [JSE:GRF] advised shareholders on Thursday that it would report a loss per share and headline loss per share of at least 170 cents per share for the six months to December 2016.

It is due to, among other things, the recognition of the group's financial socio-economic contribution of R255m, in terms of the agreement reached with the government of SA to implement a programme of initiatives that will significantly accelerate transformation of the South African construction sector, as announced in a SENS announcement of 11 October 2016.

Although payment will occur at R21.25m per annum annually over a 12-year period, the total liability must be recorded in the current reporting period as it is the period in which the liability has been incurred.

The commercial close out and final settlement of certain long outstanding contracts also made an impact.

The group also outlined that due to a difficult period for the engineering and construction (E&C) cluster, it expected profits from the underlying E&C operations - excluding the impact of the above-mentioned transactions - to be considerably below the margin guidance provided for this cluster in August 2016.

Group Five expects fully diluted headline earnings per share (FDHEPS) and headline earnings per share (HEPS) to be a loss of between 300 cents per share and 320 cents per share; and fully diluted earnings per share (FDEPS) and earnings per share (EPS) to be to be a loss of between 295 cents per share and 310 cents per share.

The six months ended 31 December 2015 reflected earnings per share (EPS) and fully diluted earnings per share (FDEPS) of 168 cents and headline earnings per share (HEPS) and fully diluted headline earnings per share of (FDHEPS) 131 cents respectively.

Read Fin24's top stories trending on Twitter:

group five  |  construction  |  earnings reports  |  property
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Voting Booth

What do you think about private healthcare in SA?

Previous results · Suggest a vote

Loading...