GRF
GRF - Group Five Limited - Trading statement and cautionary
announcement
GROUP FIVE LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1969/000032/06)
Share code: GRF ISIN: ZAE000027405
("Group Five" or "the group" or "the
company")
TRADING STATEMENT AND CAUTIONARY ANNOUNCEMENT
CAUTIONARY ANNOUNCEMENT
The board of directors of Group Five have resolved to dispose
of the businesses
that constitute the construction materials segment and, as
such, the group is
currently in discussions with several parties to effect these
disposals. If
successfully concluded, the disposals may have an effect on
the price of the
company's shares.
Accordingly, shareholders are advised to exercise caution
when trading in the
company's shares until a further announcement has been
made.
TRADING STATEMENT
Group Five shareholders are advised that, for the six months
ended 31 December
2011, the group expects:
* Fully diluted headline earnings per share
("FDHEPS") to be between 30%-36%
lower (127 cents per share to 139 cents per share);
* Headline earnings per share ("HEPS") to be
between 35%-42% lower (124 cents
per share to 139 cents per share);
* Fully diluted earnings per share ("FDEPS") to be
between 123% - 127% higher
(81 cents per share to 96 cents per share); and
* Earnings per share ("EPS") to be between 123% -
127% higher (81 cents per
share to 96 cents per share)
than the FDHEPS of 198 cents per share, the HEPS of 214 cent
per share, the
FDEPS of 354 cents loss per share and the EPS of 354 cents
loss per share
published for the previous corresponding period.
In addition, and to assist for comparative purposes,
* Earnings for the current period have not been affected
materially by
pension fund valuation adjustments
* Earnings for the current period reflect an increase in fair
value
adjustments on service concessions within Investment and
Concessions,
regarded as a core component of the earnings within this
segment, due to
the early roll-out of the second phase of the A1 Project in
Poland
* The H1 F2012 FDHEPS and FDEPS guidance given above is
calculated using
fully diluted shares and thus mainly includes the effect of
the shares held
by the group's BBBEE partners, which, due to the current
lower value of the
group's share price, is antidilutive in the current
period.
* The group will be required to account for the construction
materials
segment (refer to cautionary statement above) as a
discontinued operation
and as Non-Current Assets Held for Sale. A restatement of
both HEPS and
FDHEPS for the prior reporting period will be required. To
assist, the
group discloses that the restated HEPS and FDHEPS for H1
F2011 is 251 cents
per share and 233 cents per share respectively (previously
reported at 214
cents per share and 198 cents per share) and thus the group
advises that it
expects
* Fully diluted headline earnings per share
("FDHEPS") to be between 42%
- 47% lower (123 cents per share to 135 cents per share);
and
* Headline earnings per share ("HEPS") to be
between 45% - 50% lower
(126 cents per share to 138 cents per share)
than the restated FDHEPS of 233 cents per share and the
restated HEPS of 251
cent per share, for the previous corresponding period.
OPERATIONAL UPDATE
The underlying performance of the group's businesses
performed broadly in line
with management expectations and in accordance with the
guidance provided in
November 2011.
The results were impacted by losses in the Construction
Materials segment. The
Civil Engineering results have been impacted in the short
term by holding costs
and losses in the Middle East from one contract as previously
reported.
Restructuring in the group had a net cost in the first half,
the benefits of
which will realise from H2 onwards. In addition, the group
has continued to
invest in future opportunities in targeted sectors, the
benefits of which will
not be realised in F2012.
Manufacturing has improved well with an increase in volumes
traded during the
reporting period.
In spite of sluggish domestic concessions and PPP activities
and the economic
pressures in Europe, Investments and Concessions performed
well as new tolling
contracts came on line in Eastern Europe.
MARKET CONDITIONS
Emphasis on a larger geographical footprint for more of the
group's business
units and achieving early wins in the re-emergence of the
mining and energy
markets in Africa has assisted to mitigate, to some extent,
the continued
weakness in the South African construction and engineering
markets.
Despite the cancellation and delay in planned and awarded
public sector works,
particularly PPP projects which exacerbated the domestic
market weakness, a slow
broader market recovery from the second half of F2012 is
expected to support
some improvement in the group's trading performance from
F2013.
REPORTING
The above information has not been reviewed or reported on by
Group Five's
auditors. The group's results will be released on SENS on
13th February 2012
when the group will be updating the market on its business in
a presentation in
Johannesburg on the same day, and in Cape Town on 14th
February 2012. The
presentation will be available on the 13th February 2012 for
all stakeholders on
the group's website, www.groupfive.co.za
Johannesburg
27 January 2012
Investment Bank and Sponsor
Nedbank Capital
Date: 27/01/2012 15:35:01 Produced by the JSE SENS
Department.
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distribué par | Ce noodl a été diffusé par Group Five Ltd.. Il a été distribué par noodls dans son format d'origine et sans modification sur 2012-01-27 16:03:17 PM et restera accessible depuis ce lien permanent. Cette annonce est protégée par les règles du droit d'auteur et toute autre loi applicable, et son propriétaire est seul responsable de sa véracité et de son originalité. |