Protech losses worsen as investigation reveals bigger DRC impact
Protech this week announced that its losses for the year had worsened as investigations delved deeper into the impact of the group’s 33.33% exposure in an embattled joint venture (JV) project in the Democratic Republic of Congo (DRC).
After heading into voluntary business rescue on June 2, further investigations initiated by the directors have revealed that the worsening project performance of the DRC JV and the R40-million cash due to Protech resulted in increased losses for the year ended February 28.
The civil engineering and construction company, which was due to release its financial results for the year this week, expected to show a loss a share of between 29c and 32c and a headline loss a share of between 30c and 33c.
This compared with earnings a share of 4.4c and headline earnings a share of 3.9c achieved in the previous financial year and a March update forecasting a loss a share of between 23c and 27c and a headline loss a share of between 24c and 28c for the year under review.
Protech pointed out that the imminent completion of the DRC project would see an end to the group’s foreign exposure in the short- to medium-term and no further adverse effects were expected on the group’s profitability going forward.
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