There is a lot at stake. In the immediate future it’s the jobs that will go and for the country's long-term future, it’s the loss of skillsLANDMARK OFFICE: An artist’s impression of Group Five’s head office at Waterfall Business Estate.
Within a decade, the industry’s invincibility has been smashed to smithereens. Falling order books, tight liquidity and paper-thin margins have brought it to its knees. The JSE construction and material index’s underperformance in relation to the JSE all-share index in the past decade bears testimony to this.
At the moment, public investments in roads, water and power are the key drivers of civil construction in SA. As seen in Group Five’s Kpone project, there is a huge cost to delayed delivery of projects and poor execution. In the year ended June 2018 alone, Group Five’s losses on the Kpone project were R1.3bn. In the prior year, the loss was R649m.
Group Five also wants to exit manufacturing, hence the recent sale of Everite and Sky Sands to a consortium comprising private equity companies Trinitas Private Equity and Agile Capital for R480m.
Berita ini telah kami rangkum agar Anda dapat membacanya dengan cepat. Jika Anda tertarik dengan beritanya, Anda dapat membaca teks lengkapnya di sini. Baca lebih lajut:
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
SA’s construction industry, like Group Five, may be collapsingAs construction companies crumble, SA will have to rely on foreign companies — and their prices — for infrastructure builds
Sumber: BDliveSA - 🏆 12. / 63 Baca lebih lajut »
Fishing industry warns government over allocation of rightsA chairperson says the fishery is South Africa’s most valuable and it is transformed, sustainable, and internationally competitive.
Sumber: TheCitizen_News - 🏆 6. / 75 Baca lebih lajut »
Finance committee adopts crucial amendments to Insolvency ActLast minute interventions by the Reserve Bank governor helps secure passage of amendments through the finance committee
Sumber: BDliveSA - 🏆 12. / 63 Baca lebih lajut »
No quorum in National Assembly for vote on crucial finance billThe Financial Matters Amendment Bill was one vote short after most of the Democratic Alliance was absent from the National Assembly
Sumber: BDliveSA - 🏆 12. / 63 Baca lebih lajut »
MAVERICK BUSINESS: Group Five: Another SA construction giant buckles under the pressureGroup Five, one of SA’s biggest names in construction and the company that built the Moses Mabhida stadium and King Shaka airport in Durban, filed for business rescue on Tuesday 12 March, becoming the latest in a long line of construction companies that have gone under in the past few years. The question now is not so much whether the company sector can be saved, but whether the sector can ever be revived, and if so, how. When companies like group 5 are crumbling, what chance do we have as smaller construction companies? It's tough It is tough out there.
Sumber: dailymaverick - 🏆 3. / 84 Baca lebih lajut »