Ad­ju­di­ca­tion award will hit earn­ings

The Star Late Edition - - COMPANIES - – Roy Cokayne

LISTED con­struc­tion and engi­neer­ing group Aveng has re­vised its pre­vi­ous mar­ket guid­ance and re­duced its ex­pected earn­ings for the six months to De­cem­ber by R92 mil­lion be­cause of a sig­nif­i­cantly lower-than-ex­pected dis­pute ad­ju­di­ca­tion board award. The award re­lated to the Mokolo Croc­o­dile Aug­men­ta­tion Project in Lim­popo. The group said yes­ter­day it had re­ceived the award no­ti­fi­ca­tion this week from the board but had not an­tic­i­pated re­ceiv­ing it dur­ing this re­port­ing pe­riod. It said the award was in favour of the group, but the quan­tum of the award was “sig­nif­i­cantly less” than ex­pected in the prepa­ra­tion of the com­pany’s fi­nan­cial re­sults for the year to De­cem­ber. “Aveng is not in agree­ment with this award and is con­sid­er­ing fil­ing a no­ti­fi­ca­tion of dis­sat­is­fac­tion, which may move this dis­pute into ar­bi­tra­tion. De­spite the group’s view on the re­cov­er­abil­ity of this claim, Aveng be­lieves it is pru­dent for this ad­just­ing post-bal­ancesheet event to be recog­nised, and the group is there­fore re­quired to re­vise the pre­vi­ously pro­vided guid­ance to the mar­ket, re­sult­ing in earn­ings re­duc­ing by R92m,” it said. Aveng said the group now ex­pected head­line earn­ings a share to be be­tween 66 per­cent and 74 per­cent worse than the 58c loss in the pre­vi­ous year. This equates to a head­line loss a share of be­tween 96c and 101c for this re­port­ing pe­riod. Aveng ex­pects to re­lease its in­terim fi­nan­cial re­sults on Fe­bru­ary 20.

PHOTO: SUP­PLIED

Aveng has re­duced its ex­pected in­terim earn­ings by R92m.

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