Group Five shares plunge to four-month low after it flags earnings drop

Shares of Group Five plunge more than 14% on the JSE, as the construction company says annual profits will be sharply lower.

Shares of Group Five on Monday plunged more than 14% on the JSE. The drop came after the construction company said annual profits would be sharply lower.

After opening at R25.50‚ the share price fell to R21.62 - its lowest level since March 30.

The Johannesburg construction group said it expected headline earnings per share to drop by between 45% and 53% for the June financial year.

The company provided no reasons for the decline.

The local construction industry has been suffering from slow government expenditure on infrastructure‚ rising costs and loss making projects that have damped margins.

At 11.48am Group Five’s share price was down 14.21%.

Group Five’s financial results are scheduled to be released on August 17.