Group Five Limited. JSE: GRF

Group 5 shares

Background of Group Five

  • Group Five is a diversified construction, manufacturing and concessions group operating in South Africa, the rest of Africa and Eastern Europe. The group’s history stems back to 1974, and today Group Five employs over 10 000 people in 26 countries.

  • Group Five’s offerings include investment, project development, design, construction, operations and maintenance, along with manufacturing and supply of materials. The group is split into three key business divisions which, when combined, deliver multiple profit streams from a single contract. The Investments and Concessions cluster comprises Infrastructure, G5 Properties and Concessions Operations. The Manufacturing cluster comprises steel and fibre cement businesses, whilst the Engineering and Construction division focuses on building and housing, civil engineering, nuclear construction services and power.

  • Group 5 shares are available to buy on the Johannesburg Stock Exchange (JSE) with a market cap of R2.5 billion.

Group Five Shares Growth Driver

  • Group Five had a net profit of R280 million for the 2015 financial year, significantly down from the R439 million recorded in 2014. This disappointing data was largely due to poor performance from the Engineering and Construction cluster, which suffered due to delayed contracts, internal execution issues and weakness in the energy sector. The Civil Engineering segment was identified as a particularly problematic area, and was subsequently restructured and rightsized.

  • Investments and Concessions continues to be the group’s best performer, realsing a fair value upward adjustment of R115.7 million, largely due to excellent results from Eastern Europe operations. Rapid decline of steel prices and the impact of power outages impacted the manufacturing cluster, but the group is seeking to buy into production efficiencies and build new trade products.

  • Results for the last six months of 2015 were more pleasing, with Group Five recording a net profit of R200 million, compared to R145 million the previous year. This recovery has been driven by continued strong results from the Investments and Concessions cluster and improvements gleaned from the restructuring of the Engineering and Construction cluster. Challenging market conditions are persisting in the construction, manufacturing and civil engineering sectors, which are forcing the group to reduce carrying costs more than expected and put some divisions up for sale.

Group Five Group Investor Tip

  • The live online stocks chart shows that Group Five share price dropped from a high of R45 in 2014 to R22.60 by mid-2016. However, the group’s latest financial results are indicative of a positive turnaround, whilst a nil net gearing ratio and an increase in bank and cash balances indicates a strong financial position.

  • The group has announced that earnings for Group Five shares are expected to increase by more than 20% in the medium-term, as a result of larger than usual fair value upward adjustments and improved forecast cash flows from service concessions in Eastern Europe. Group Five share price is steadily showing signs of improvement, but success will hinge on the strength of the engineering and industrial markets. Investors may want to buy into the large company at its current low entry point, but can only expect returns in the long-term.

Group Five Major Shareholders

Government Employees Pension Fund, Group Five BEE Share Scheme Control Account, Sanlam, PSG, Allan Gray.

  • Sector


  • Industry

    Engineering & Construction Svcs

  • Sub industry

    Infrastructure Construction

How to buy Group Five Group Shares

  • Group Five : How to buy Group Five Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Group Five Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Group Five Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Group Five Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Group Five Group.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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