Construction slump hits Adelaide Brighton's profits, as developer Ralan Group collapses
- wilson079
- Jul 31, 2019
- 1 min read
One of the nation's largest property developers, Ralan Group, has gone into voluntary administration, leaving billions of dollars worth of apartment projects in doubt and around $500 million owing to creditors.
Furthermore, cement manufacturer Adelaide Brighton has scrapped its interim dividend, in addition to a severe profit downgrade, sending its shares tumbling 18.3 per cent to $3.53.
Its shock profit warning also caused investors to dump their shareholdings in rival companies Boral (-7.8pc) and CSR (-6.1pc), which are subject to similar economic pressures.
All this occurred a day after building approvals plummeted by 25.6 per cent since last year, according to the latest figures from the Bureau of Statistics (ABS).
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