Group Five’s headline loss per share is expected to widen to R14.50 for the year to end-June, the embattled construction group said on Wednesday. In its trading update, the group said that investors could expect a headline loss per share of between R13 and R14.50, compared with a loss of R8.53 per share in 2017. After the announcement Group Five’s share price fell by as much as 30%, its biggest drop so far in 2018, and spurred negative sentiment for the sector as Aveng’s share price fell by more than 16%. The construction sector in SA has been under considerable pressure over the past 10 years as the economy struggles. Fewer large construction projects are commissioned, leading to job losses in the sector. There is some indication that the tide has turned for the sector as the government has indicated it plans to spend more than R940bn on infrastructure. But that change has not come soon enough to save Group Five’s 2018 results. Independent analyst, Chris Gilmour said that while the...
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