CONSTRUCTION
Group Five stock rises on sale of pipe firm
The construction firms is to sell 50% of Group Five Pipe to LB Pipes for R80m
Shares in Group Five closed 6.8% higher at R12.50 in Johannesburg on Wednesday after the construction and engineering firm said it would sell its stake in a noncore steel pipe manufacturing business. "Although the manufacturing cluster — which includes Group Five Pipe — remains a strong performer within the group and contributes solid earnings and cash flow, it is regarded as a noncore operation," the company said. Group Five would sell its 50% share in Group Five Pipe for R80m to LB Pipes, a majority black-owned company. LB Pipes has backing from the Industrial Development Corporation. Group Five Pipe, a joint venture with Marine Civil, makes steel pipes mainly for water transport systems. In the year to the end of June, Group Five’s share of operating profits from the joint venture was just R13,000. Group Five reported a total comprehensive loss for the year to June of R907m, compared with a profit of R737m in 2016, as revenue dropped from R13.8bn to R10.8bn. The company said in O...
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.