Group Five says its operating performance for the year to June 2017 is “materially below expectations”, with only the relatively small manufacturing division making a profit. The group posted a total comprehensive loss for the year of R907m from a profit of R737m in 2016, as revenue plunged from R13.8bn to R10.8bn. Nearly all of this stemmed from the company’s moribund mainstay engineering and construction business, which reported hefty losses across the board. “Group Five’s results show that there remains a lot of restructuring work to be done to bring the group back into profitability,” Dexter Mahachi, an analyst at Momentum SP Reid Securities, said on Tuesday. Mahachi’s comments came as Group Five revised the company’s structure for financial 2018 into four operating clusters from three previously. This included splitting the struggling engineering and construction business into a separate construction cluster and one for engineering, procurement and construction. This came amid ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.