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South Africa

Aveng Limited (Aveng) is a South Africa-based company. The Company is engaged in the construction and steel beneficiation. The primary subsidiaries of the Company include Aveng (Africa) Limited, Trident Steel Holdings (Proprietary) Limited and Aveng Australia Holdings Proprietary Limited. The Company’s business segments include construction and engineering, which consists of Grinaker-LTA, McConnell Dowell Corporation Limited and Engineering and Projects Company ( E+PC). McConnell Dowell Corporation Limited is engaged in civil and marine, electrical, mechanical, pipelines and tunneling. Grinaker-LTA is engaged in building, civil engineering, concessions, mechanical and electrical, mining, property developments, roads and earthworks. E+PC is engaged in minerals processing and industrial, sulphuric acid and gas handling, chemical and petrochemical, environmental services, power and energy, and metallurgical operations.
Block B, 204 Rivonia Road Morningside
Rivonia, 2128
South Africa
+27-11-7792800 (Phone)
+27-11-7845030 (Fax)

Aveng Group full year results
Tuesday 10th September, 2013
SA construction sector overshadows resilient performance at other group operations

Revenue improved by 27% to R51,7 billion (2012: R40,9 billion)
Net operating earnings up by 7% to R656 million (2012: R613 million)
Headline earnings per share decreased by 3% to 124,6 cents (2012: 128,1 cents)
Order book decreased by 6% to R37,4 billion compared with  31 December 2012
Net cash position of R2,4 billion (2012: R3,9 billion)
Solid contribution by Construction & Engineering: Australasia & Asia, and Mining
Losses in the Construction & Engineering: South Africa and rest of Africa
Operating conditions in the South African construction and engineering markets remained challenging with performance adversely impacted by labour disruptions and some problem contracts. This was buffered by a strong performance from Aveng Moolmans, which focuses on the African mining sector, and McConnell Dowell (“MacDow”) in Australasia and Asia. As a result, the Aveng Group’s net operating earnings increased by 7% to R656 million and HEPS decreased by 3% to 124,6 cents. Revenue for the financial year 2013 rose by 27% to R51,7 billion, of which 63% were generated outside of South Africa.

The year under review saw the resignation of Roger Jardine after five years as Aveng’s CEO. During 2013 the group’s operating structure was reorganised to streamline operations and improve customer focus. Aveng Group now comprises six sector-specific operations, namely Aveng Mining, Aveng Steel, Aveng Engineering, Aveng Manufacturing, Aveng Construction Africa and Macdow.

The company also announced that Aveng Africa’s R307 million administrative penalty, which was confirmed by the Competition Tribunal in July 2013, represents a full and final settlement of the Competition Commission’s “fast track settlement” consent agreement. Having cooperated fully with the investigation and continuing to enforce anti-collusion mechanisms throughout the organisation, Aveng said that the settlement has provided certainty and finality to stakeholders, allowing the group to move forward from this regrettable period in the industry’s history.

Commenting on the results, Aveng Group’s Acting CEO Kobus Verster said: “Aveng has faced a challenging year and our South African construction business has overshadowed resilient performance across other group operations. Our Australasia and Asia segment performed well, as did Aveng Moolmans in the Mining segment.”

Aveng Group’s two year order book remains strong at R37,4 billion.  Mr Verster said: “We expect public sector infrastructure spending to remain subdued in South Africa and are therefore targeting growth in other markets as a priority. Aveng Grinaker-LTA, Aveng Mining and Aveng Manufacturing are targeting opportunities across the African continent, while MacDow is tendering for a number of large public private partnership and transport opportunities, which should place it in a good position going forward. The strength of our order book, and the remedial action we have taken to improve operations should result in a solid improvement in our operational performance in 2014.”

Mr Verster concluded: Financial year 2014 will be a year of consolidation and repositioning as our operations strengthen their focus and optimise their performance.”



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