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Forge suspends trade & calls in administrators February 12, 2014 11:30 AM

Embattled mining services group Forge Group Limited (ASX:FGE) has suspended the trading of its stock on the ASX and called in administrators.
 
Today’s announcement comes after Forge yesterday advised its financiers have withdrawn support, understood to also include its principal lender ANZ Banking Group (ASX:ANZ).
 
The bad news began in November 2013 when Forge shares crashed more than 80 per cent after revealing a $127 million write-down and flagging a full year loss of up to $90 million.
 
Forge has told the market today its directors are working with the administrator and considering options for the restructure of the company.  
 
Shares in Forge Group hit a high of $6.91 last year but have sank steeply since and last traded at 91.5 cents on Monday 10, February.
 
Forge Group reported a net profit of $62.9 million in the 2013 financial year.

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2 comments so far
It is no good looking at the future workload either, less than average estimating and not covering simple guidelines when reviewing and closing the tender including head contract reviews from Directors down is a recipe for failure. Wanting flagship projects without the correct tendering procedures in place is a folly !!
Posted By:  Jim Gutteridge - Feb 12,2014 14:40
I find it quite extraordinary that a Co. such as Forge Group could under-estimate their costings on projects associated with the two ( 2 )power stations which appears to have brought them undone.Surely in this day & age with the tools available in the financial area chief financial officers in any company shouldn't get it so wrong.If budgets for a project are costed properly & possible overruns are allowed for then a profit should eventuate from this or at best break even.
Posted By:  Mr. Clement Cuneo - Feb 12,2014 12:30


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