Group Five’s struggles deepen as Kpone delays in Ghana bite
The full-year loss has deepened and veteran CFO Cristina Teixeira has resigned
Struggling engineering and construction company Group Five has plunged deeper into the red and announced the resignation of its long-serving chief financial officer. Group Five posted a net loss of R1.3bn in the year to end-June, in line with its recent guidance, and against a loss of R840m in the matching period a year ago. The delayed Kpone power plant contract in Ghana cost the South African company dearly, as it racked up losses of R1.3bn. A tough construction market continued to bite, with the group's order book shrinking to R11.2bn from R14.5bm a year ago. In 2016, the order book stood at R17.3bn. Like some of its peers, Group Five has reorganised its portfolio, selling some of its manufacturing businesses to cope with the tough environment. Group revenue dropped 26.2% to R7.3bn, mainly as a result of a 20.2% drop in revenue from the construction SA unit and an 82.3% plunge in revenue from the engineer, procure and construct unit, which was hit by the Kpone delay. Group Five's...
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