06/11/2013 - 10:29

Forge still resolving project issues

06/11/2013 - 10:29

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Forge Group has suspended its shares two days after calling a trading halt as it is still unable to determine the full extent of performance issues at two of its power station projects.

Forge Group managing director David Simpson.

Forge Group has suspended its shares two days after calling a trading halt as it is still unable to determine the full extent of performance issues at two of its power station projects.

The company placed its shares in a trading halt on Monday but flagged at the time that it expected to resume trading by today.

Forge instead this morning requested a suspension of its shares from quotation, telling the market that it now expects to resume trading by next Monday.

"Forge is working 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 June 30 2014," the company said.

"However, at this stage, Forge does not consider that it has sufficient certainty regarding these matters to provide an update to the market."

Forge said earlier this week that 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.

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.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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