REUTERS, Johannesburg | Friday
CONSTRUCTION and engineering company, Group Five Ltd, expected a sharp improvement in business, despite the 50% plunge in earnings per share in the last year.
The group, which was hit by significant losses in its engineering division and a sluggish performance in construction, expects its EPS to surge by 70% in the coming year in response to its recent restructuring and secured orders of more than R2.2bn.
The absence of an upturn in South Africa’s construction industry meant the group would pursue opportunities outside the country and talks with a potential foreign equity partner would resume soon, it said.
Group Five said its EPS plunged to 42.1 cents per share in the year to June 30 from 84.2 cents the previous year, while turnover grew by 7% to R2.86bn.
Poor market conditions hit manufacturing interests while lack of infrastructure projects in the country also hit profits, despite improved profitability in building activities.
24