Forge halts trading ahead of update

Forge Group has entered a trading halt as it prepares to update the market on its financial position after announcing a $127 million profit writedown late last year.

Forge said it expects to resume trading upon making the announcement next Tuesday. 

The company's shares have been heavily traded over the past week, recovering ground with a 13 per cent gain yesterday having dipped more than 15 per cent in the previous day's trade.

Forge stock finished the day's trade on Monday at $1.42 but closed at just $1.10 on Wednesday.

Its shares have closed as high as $1.74 and as low as 47 cents over the past month.

The company entered the trading halt this morning at $1.25, still well below its closing price of $4.18 before it entered a month-long trading halt at the beginning of November. 

Spooked investors wiped more than 83 per cent from the contractor's market value in a single day in November when the contractor resumed trading and announced a $127 million one-off profit writedown on two power station projects.

The company now expects to report an earnings before interest, depreciation and amortisation loss of between $85 million and $90 million in FY14.