A horrific third trading update from one-time punter’s darling, Consolidated Infrastructure Group (CIG), wiped 57% off its share price on Tuesday, compounding last week’s 21% slide. CIG’s market capitalisation, which peaked at more than R7bn in October 2015, dropped to less than a 10th of that — to R687m — at Tuesday’s close of the market. A day before it was due to release results for the year to the end of August, CIG warned that headline earnings would be "at least" 55% worse but did not "have reasonable certainty to provide a percentage range". CIG’s management has promised that the results will be published by "no later" than November 30. Vunani Securities small-cap and medium-cap analyst Anthony Clark said "this is an utter catastrophe. I would say the market is going to demand someone’s head on a spike. "The key issue here is why didn’t management know what was going on?" Market talk is rife that the implosion will force a breach of CIG’s banking covenants or push it to a rig...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.