Suspended Forge tips power push problems
Forge Group has signalled deepening financial woes from its push into the power sector, which is expected to force the group to go to the market to raise cash.
With its sharemarket trading suspension dragging into its second week, Forge disclosed on Monday it was discussing with its "financiers and advisers" what steps are needed to sort out the problems identified with two power station contracts. "Forge believes that the concerns it has identified are likely to materially affect its earnings guidance and outlook for the financial year ending 30 June 2014," it told the ASX.
It told shareholders in October it would indicate the earnings outlook for fiscal 2014 this month. In the year to June, Forge earned a net profit of $63 million on revenue of $1.1 billion.