Middle East weighs on Group Five's results
Cancelled pipeline contract in Jordan adds to losses for company
The termination of a pipeline contract in Jordan has contributed to a sharp decline in earnings for construction and infrastructure company Group Five.
The company has reported diluted headline earnings per share, down 44% to 130 cents for the six months ending December 2011. It has also declared an interim dividend of 22 cents per share.
Revenue dropped by 4% to ZAR4,407bn ($580.9m). The company said the weak South African domestic market, along with delays in public projects in the country, have impacted its earnings.
In the Middle East, it reported “slow but positive progress”, although the pipeline project in Jordan had returned further losses, which had resulted in the project being terminated by mutual agreement with the contracting parties.
"The results are somewhat disappointing," CEO Mike Upton told the Business Day newspaper in South Africa.