South Africa’s diversified construction firm Group Five has dismissed a warning issued by Johannesburg Stock Exchange (JSE) on Monday 4th January that stated it faced suspension for the late submission of results.
Group Five went ahead to explain that this involved debt instruments listed by a subsidiary and not the holding company’s shares.
Group Five spokesperson deemed the issue administrative and said it would be resolved in the next few days.
The construction and engineering group said it always published its annual report on the day it released its results and that this practice was “well ahead of most companies”.
According to the JSE, Group Five Construction which is a subsidiary of listed Group Five had a debt instrument listed on the JSE and would suspend trading of its debt instruments should the exchange not receive the subsidiary’s results by the end of this month.
“Such announcement is issued to give warning to debt securities holders that the issuer has failed to submit its annual report and that the listing of the issuer’s securities is deemed for suspension and possible termination,”said the JSE.
The director of marketing and corporate affairs at the JSE Zeona Jacobs said on Monday that Group Five Construction had the responsibility to issue a stock exchange announcement within six months of its financial year-end to inform the market that its annual results would be published on its website.
Jacobs added that the JSE sent a reminder on December 1 to the company that its results were due, five months after Group Five Construction’s year-end.
“No stock exchange announcement was issued recently to the market on when its results will not be published on its website nor were the results received by the JSE,” she said.
Group Five issued an update in mid-December Group saying weak trading conditions in the engineering and construction cluster in the period ended-December 31 had been equalized by a much stronger forecast performance in the investment and concessions cluster.
