JOHANNESBURG, October 2 – Construction engineering company Group Five on Tuesday reported a headline loss per share of 1,380 cents in the year to June, from a loss of 853 cents in 2017.
Group Five said it incurred an operational loss of R1.427 billion compared with R718 million last year, which it attributed in part to the independent engineer, procure and construct (EPC) gas and oil-fired combined cycle power contract in Kpone, Ghana recording a significant loss.
The Construction South Africa segment’s results were impacted by the closure and rationalisation of a number of businesses, resulting in the cluster not pursuing opportunities originally anticipated, as well as the lack of contract awards.
Unsecured work materialised later than planned, impacting Construction’s results both in South Africa and the rest of the continent.
Group Five also cited retrenchment costs, including in Construction South Africa and the group’s corporate office.
It said solid results were delivered by Manufacturing and I&C, with continued free cash flow in line with expectations.
Group Five said Developments & Investments (D&I) and Operations & Maintenance (O&M) would be the core businesses of the company.
“Construction SA continues to be right-sized for current market conditions and for a streamlined service offering, focused on key disciplines and supported by proven core competencies,” it said.
“Although the business is operating on a much lower cost structure, further interventions are required due to the lack of contract awards and the increased cost of doing business.”
– African News Agency (ANA)