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GROUP FIVE LTD/GROUP FIVE HOLDINGS LTD/SM GOLDSTEIN - PROFIT WARNING

Release Date: 22/03/2000 17:01
Code(s): GHO GPN GRF GDS
Wrap Text
GROUP FIVE LIMITED
GROUP FIVE HOLDINGS LIMITED
SM GOLDSTEIN LIMITED
PROFIT WARNING

SHAREHOLDERS ARE REFERRED TO THE INTERIM PROFIT ANNOUNCEMENT MADE ON 17TH FEBRUARY IN WHICH IT WAS STATED THAT, PROVIDED THE IMPROVEMENTS FORESEEN IN THE ECONOMY FOLLOWED THROUGH INTO THE CONSTRUCTION SECTOR, PROFITS FOR THE FULL FINANCIAL YEAR SHOULD AT LEAST EQUAL THOSE OF THE PREVIOUS YEAR.
A RE-ASSESSMENT OF THE COSTS TO COMPLETE CERTAIN CONTRACTS BY THE ENGINEERING DIVISION HAS REVEALED THAT IT WILL MAKE A SIGNIFICANT LOSS FOR THE FULL FINANCIAL YEAR. MANAGEMENT ACTION HAS BEEN TAKEN TO LIMIT THE EXTENT OF THIS LOSS.
WHILE THE GROUP WILL STILL EARN A SUBSTANTIAL PROFIT FOR THE YEAR, EARNINGS WILL BE LOWER THAN THOSE ACHIEVED IN THE PREVIOUS YEAR. THE GROUP'S BALANCE SHEET REMAINS STRONG AND THE GROUP IS WELL POISED TO MEET THE BUSINESS OPPORTUNITIES OF THE FUTURE. RIVONIA 22 MARCH 2000

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