Commenting on the results, Group Five CEO Mike Upton, said: "We continued to implement our conservative approach adopted last year in terms of both the quality of the order book and cash preservation to fund activity supporting future profit growth. It is very encouraging to see a modest improvement in the construction order book, with the good cash position supporting this strategy. Furthermore, in line with our strategy of expanding our operations in Africa, we are also very pleased by the move in the over-border order book from 30% to 37%.

"However, the overall group performance during the period was impacted by delayed construction revenue due to contract postponements and client scope changes in South Africa, as well as losses in Construction Materials and holding costs and losses from one previously reported contract in the Middle East."

Looking ahead, Upton said: "Against what will continue to be volatile markets, management has a number of key focus areas in place, which include driving the sale of Construction Materials to reduce operating cash losses and improve returns, reducing the Middle East drain, further reducing the internal cost base and preserving cash to fund future growth and geographic expansion in all segments.

"Based on our positioning in the key infrastructure growth sectors of power, mining, oil and gas, water and transport and in the concessions market for specific projects, as well as the progress made in terms of improving the group's internal efficiencies, management expect a slow recovery in group activity levels from the second half of F2012. This should support some improvement in our trading performance from F2013. However, the timing of this recovery is dependent on the timing of awards on visible projects."

Summary

As per the cautionary announcement of 27 January 2012, based on the Group's operational and strategic focus, as well as the poor outlook for the construction market in the South Gauteng region, the board of directors of Group Five resolved to dispose of the businesses that constitute the Construction Materials cluster. The group is therefore required to account for the Construction Materials operating cluster as a discontinued operation and Non-Current Assets classified as Held for Sale. Accounting practice requires the comparatives reported to be restated to reflect the effect of the discontinued operations on those periods. The results and commentary below are thus presented using the restated values for comparable periods.

• Revenue from continuing operations decreased by 3,6% from R4,6-billion to R4,4-billion, mainly due to a reduction in activity levels within the civil infrastructure markets
• Headline earnings per share (HEPS) decreased by 48,2% from 251 cents per share to 130 cents per share and fully diluted HEPS (FDHEPS) by 44,2% from 233 cents per share to 130 cents per share
• Earnings per share (EPS) improved from a loss of 354 cents per share to earnings of 89 cents per share in the current year and fully diluted EPS (FDEPS) improved from a loss of 354 cents per share to earnings of 89 cents per share
• Operating profit, including fair value adjustments, decreased by 40,5% from R368-million to R219-million.