GROUP FIVE LIMITED - Trading Update

Trading Update

GROUP FIVE LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1969/000032/06)
Share code: GRF ISIN: ZAE 000027405
("Group Five" or "the company" or "the group")



TRADING UPDATE

Shareholders are advised that, for the year ended 30 June 2014, the group expects:

    •    Headline earnings per share (“HEPS”) to be between 40%-50% higher (396
         cents per share to 424 cents per share) than the HEPS* of 283 cent per share
         for the previous corresponding period;


    •    Fully diluted earnings per share (“FDEPS”) and Earnings per share (“EPS”) to
         be between 45%-55% higher (380 cents per share to 407 cents per share and
         383 cents per share and 409 cents per share respectively) than the FDEPS*
         of 262 cents per share and EPS* of 264 cents per share for the previous
         corresponding period; and


    •    Fully diluted headline earnings per share from continuing operations
         (“FDHEPS from continuing operations”) to be between 20% - 30% higher (382
         cents per share to 414 cents per share) than the FDHEPS from continuing
         operations* of 318 cents per share for the previous corresponding period.


* as disclosed with the H1 F2014 results, restated from F2013 for the first time adoption of IFRS11-Joint
Arrangements and IAS19 (Revised) Employee Benefits



RESULTS IN CONTEXT


The underlying performance of all the group’s businesses was pleasing in the
context of weak domestic markets, and in line with expectations. The beneficial
contribution of the group’s strategic positioning for annuity-type businesses of
Investments and Concessions, Manufacturing and operations and maintenance
contracts as well as the group’s strong position in African mining and energy and its
leading position in the domestic water and power sector has mitigated, to some
extent, the effects of continued fragility in the South African building and civil
engineering markets.



All business segments performed largely in line with expectations and guidance
provided in February 2014 with the exception of the H2 Civil Engineering margin
which is recovering more slowly than expected from the weak H1 position previously
reported.


Stakeholders are reminded that F2013 was impacted by the following which did not
repeat in F2014:
   -   a provision for an administrative penalty on four contracts that do not fall
       within the group’s leniency agreement with the Competition Commission,
   -   the remnant operating losses and impairment incurred in the Construction
       Materials businesses prior to their sale or transfer,
   -   Close-out costs for the group’s Middle East operations.


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 the 13th of August 2014
when the group will be updating the market in a presentation in Johannesburg on the
same day, and a presentation in Cape Town on the 14th of August 2014. The
presentation will be available on the 13th of August 2014 for all stakeholders on the
group’s website, www.groupfive.co.za.


Johannesburg

23 July 2014

Investment Bank and Sponsor

Nedbank Capital

Date: 23/07/2014 03:34:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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