04/11/2013 - 10:26

Forge halts trading on project issues

04/11/2013 - 10:26

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Forge Group has placed its shares in a trading halt, flagging performance issues at two of its power station projects.

Forge Group managing director David Simpson.

Forge Group has placed its shares in a trading halt, flagging performance issues at two of its power station projects.

Forge said it had identified concerns in relation to potential underperformance at its engineering procurement and construction (EPC) contracts at Rio Tinto's West Angelas power station project in the Pilbara and the Diamantina power station in Queensland following an internal monthly review.

Both projects were acquired as part of Forge's purchase of CTEC in January last year.

"Forge is requesting a trading halt to enable it to clarify the position in relation to these projects and to prepare and provide to ASX an update on its earnings guidance and outlook for the financial year ending 30 June 2014," the company said.

At Forge's annual general meeting last month, 40 per cent of shareholders voted against the company's remuneration report, 

The company reported a nearly 30 per cent jump in net profit for the 2013 financial year on the back of a record revenue performance.

Forge shares last traded at $4.18.

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