Basil Read’s demise has been a long time coming. It has coincided with the onset of the global financial crisis, when it traded at nearly R30/share, and with Jacob Zuma’s coming to power, trading at about R13/share. More recently, the stock has plunged from 23c as of the end of May 2018 to 1c in mid-June, before being suspended at 4c on June 20. But the company’s ills go back to just before mid-2012, when the midtier JSE-listed construction group was trading at around R15/share. Thereafter, net profit plummeted 78% in the six months to June that year to R16.5m, "as a result of SA’s floundering construction sector and multiple cases of nonpayment".

PODCAST: How the construction industry contributed to its own demise.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00.