Sharenet Sites 
Sharenet Sites
Updated trading statement
CONSOLIDATED INFRASTRUCTURE GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2007/004935/06)
JSE share code: CIL ISIN: ZAE000153888
(“Consolidated Infrastructure” or “the Company”)
UPDATED TRADING STATEMENT
Shareholders are referred to the trading statements published on SENS on 31 August 2017 and 8 November 2017,
the last of which indicated that the Company’s earnings per share (“EPS”) and headline earnings per share
(“HEPS”) for the year ended 31 August 2017 were expected to be between 50% and 55% lower (being between
114.75 cents per share and 127.50 cents per share for EPS, and between 114.89 cents per share and 127.65 cents
per share for HEPS) compared to the EPS and HEPS per share respectively for the year ended 31 August 2016.
At a board meeting convened yesterday 13 November 2017 to, inter alia, finalise and approve the results for the
year ended 31 August 2017 and on review by the board of the risks relating to the profit and loss recognition on
work in progress in respect of certain large multi-year engineering contracts, it was determined that under current
circumstances profitability on certain projects may deviate negatively from the expected results. As a consequence,
the board has required that further investigations be undertaken into three of the large multi-year engineering
contracts within Consolidated Power Projects Group Proprietary Limited (“Conco”) in order to assess the full
impact on earnings prior to the finalisation and approval of the results for the year ended 31 August 2017. Whilst
these contracts remain profitable, the margins previously recognised may result in adjustments to the results in the
current reporting period.
In addition, Conco has yet to receive compensation for scope of work adjustments raised. These scope adjustments
are due to cost overruns incurred and/or changes in engineering. It is expected that the additional revenue for
certain of these scope of work adjustments raised may not be recovered in full.
With reference to the further trading statement published on 8 November 2017 the reasons for the change were
driven by the following factors which applied to the Conco business:
- lower than expected revenue as result of uncharacteristically poor execution;
- meagre growth in the international business;
- political and civil unrest on existing projects;
- delays in the award of and technical sign off on the commencement of projects; and
- contraction of opportunities in the South African power sector.
Conco, in addition, took on a significantly higher number of overhead lines contracts resulting in higher execution
risks and cost overruns having a negative impact of R52 million on the 31 August 2017 results. The 31 August
2017 results will be further impacted by R9 million as a result of a reduction in anticipated profit recognised from
Angola Environmental Services, additional amortisation of intangible assets of R12 million and a final adjustment
to our foreign exchange loss of R19 million.
Shareholders are accordingly advised that pending the outcome of the further investigations requested by the board
in respect of the profit recognition on the larger contracts and compensation for scope of works adjustments, the
EPS and HEPS for the year ended 31 August 2017 is expected to be at least 55% lower than the EPS and HEPS per
share for the year ended 31 August 2016. Consolidated Infrastructure does not have reasonable certainty to provide
a percentage range and numbers or a specific percentage and numbers at this stage and a further trading statement
will be released with the EPS and HEPS ranges once the Company obtains reasonable certainty.
The financial information on which this trading statement has been based has not been reviewed or reported on by
the Company’s auditors.
As a result of the above, shareholders are advised that the Company expects the financial results for the year ended
31 August 2017 to be published by no later than 30 November 2017.
14 November 2017
Sponsor
Java Capital
Date: 14/11/2017 10:01:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
