VDM to lose $3m on Cape Crushing sale

Construction and contracting company VDM Group has announced it will take a $2.9 million loss on the sale of its Cape Crushing and Earthmoving Services subsidiary.

The loss adds to the disappointing first half result of $31.7 million in the red, VDM said.

Despite the expected dent in profits, VDM said its financial performance continued to improve as it completes its restructure of operations.

The company reiterated it expected to lodge a profit for the second half of financial year 2012.

VDM announced the sale of Cape Crushing to the CFC Group for $46.5 million in December last year.

The company’s stock finished the day’s trade down 11 per cent, at 5.7 cents.