This was announced in a trading update of the company’s expected earnings for the year ended 30 June 2014.
[DATA GRF:Group Five Limited] believes that the losses suffered in 2013 such as an administrative penalty by the Competition Commission on four of its contracts, operating losses and impairment incurred in their construction and materials business prior to its sale as well as the close out costs for the group’s Middle East operations, will not be repeated in its full year results for 2014.
Headline earnings per share are anticipated to be 40 to 50 per cent higher, between 396 cents and 424 cents per share, compared to 283 cents per share for the previous corresponding.
Fully diluted earnings per share (FDEPS) and earnings per share (EPS) are also set to increase by 45 to 55 per cent, between 380 cents and 407 cents per share, and 383 cents to 409 cents per share respectively. Previously, FDEPS was at 262 cents with EPS at 264 cents.
(READ MORE: Group Five delivers increased interim revenue)
“The underlying performance of all the group’s businesses was pleasing in the context of weak domestic markets, and in line with expectations,” said Group Five in a statement.
The group added that they have a strong position in African mining and energy sectors despite the continued fragility in the South African building and civil engineering markets which has affected their leading position in South Africa’s water and power sectors.
Group Five’s full year results are set to be released on the 13 August 2014.