CONSTRUCTION
More pain ahead for Group Five after setback in Ghana
An oil and gas project in Ghana, which has racked up losses of R1.3bn, is set to heap more woes on what was once one of SA’s iconic construction companies. On Tuesday Group Five revealed it had missed the October deadline for the Kpone project in Ghana. News of the missed completion deadline briefly pushed the company’s securities down 22.4% to 90c on Tuesday morning before it recovered to close 0.86% weaker at R1.15. The construction company is a shadow of its former self when its share traded at more than R70 in 2007. Group Five now has a market capitalisation of about R129.1m. It has lost 97.43% of its value in the past five years. This is symptomatic of the difficulties facing the SA construction industry, which has experienced a slump since the boom ahead of the 2010 Soccer World Cup. Fellow construction companies Basil Read and Aveng have also seen their respective share prices and market capitalisation crash in the past decade. Losses relating to the $410m independent gas and...
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