Group Five CEO Eric Vemer to leave as company swings into loss
The construction group, which has slashed its interim dividend, says the loss is partly a result of the sector's transformation agreement
Group Five CEO Eric Vemer will leave the company "in the next few weeks", the construction group said on Wednesday, as it reported a loss for the six months to December and declared a much lower dividend. Group Five attributed the loss partly to costs associated with a deal reached with the government last year to fast-track transformation in the sector. The company cut the interim dividend to 14c per share from 42c in year earlier period. The headline loss per share in the review period was R3.10, from headline earnings per share (HEPS) of R1.31 a year ago. A total of seven major construction companies are to contribute about R1.25bn over a 12-year period to a fund to be used for socioeconomic development. Group Five’s contribution totals R255m. The company also noted that the commercial close-out and final settlement of "certain long-outstanding South African public sector contracts" had negatively affected operating profit. Group revenue was down 19.7% to R5.8bn as a result of de...
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