Group Five’s headline earnings plunge

EMBATTLED construction and engineering giant Group Five reported a loss of 853 cents in headline earnings per share (Heps) and fully diluted Heps, from a profit of 335c per share in 2016, for the year to the end of June.

Group Five said the results had been significantly affected by a number of exceptional items, operating losses in the engineering and construction segment, and a weak order book.

Earnings per share (EPS) and fully diluted EPS decreased from a profit of 375c per share in 2016 to a loss of 829c per share in the year to June.

Group Five said the difference between earnings and headline earnings this year was mainly a result of a profit on the fair value adjustment of an investment property held by an associate company and profits on the disposal of property, plant and equipment.

Group revenue decreased 21.6%, from R13.8 billion to R10.8bn, mainly because of a 25% decrease in revenue from the engineering and construction cluster. But the manufacturing cluster performed well, growing its revenue 17%.

The investments and concessions cluster’s revenue decreased 8.5% compared with 2016.

The group’s core operating profit decreased from R736.5 million to a loss of R659.3m.

The board decided not to declare a dividend. – ANA