Drop in Aveng’s rev­enue as tran­si­tion to re­sources and min­ing pro­gresses

Pretoria News - - NEWS - ED­WARD WEST ed­[email protected]

AVENG’S rev­enue fell to R11.2 bil­lion in the six months to De­cem­ber 31 from R13.4bn in the com­pa­ra­ble pe­riod a year be­fore due to planned non-core as­set sales as the tran­si­tion to be­come an in­ter­na­tional in­fra­struc­ture, re­sources and min­ing busi­ness pro­gressed.

Net op­er­at­ing profit of R14 mil­lion swung around from the R484m loss re­ported in the com­pa­ra­ble pe­riod a year be­fore, driven by core busi­ness per­for­mance.

Core rev­enue ahead.

“We, as the man­age­ment, are very happy with these re­sults,” said chief ex­ec­u­tive Sean Flana­gan in an in­ter­view.

Mool­mans re­turned to prof­itabil­ity was marginally and cash pos­i­tive con­tract min­ing op­er­a­tions, af­ter a pre­vi­ously loss-making con­tract was turned around, fol­low­ing rates rene­go­ti­a­tions, and time was spent en­sur­ing the right equip­ment was on site to meet pro­duc­tion tar­gets, he said.

McCon­nell Dow­ell, the con­struc­tion and engi­neer­ing sub­sidiary that op­er­ates in Aus­tralia, New Zealand and South­east Asia, main­tained its prof­itable trend, was cash pos­i­tive and grew its or­der book.

Of the R17.9bn core or­der book, 72 per­cent was in­ter­na­tional and 28 per­cent South Africa.

Flana­gan said non-core as­set dis­pos­als were mov­ing ahead as planned and the an­tic­i­pated val­ues for the com­pa­nies were be­ing re­ceived, McCon­nel Dow­ell had re­ported profit in its fifth re­port­ing pe­riod in a row, and some R450m in debt had been re­paid.

Non-core as­set sales saw pro­ceeds of R222m in the in­terim pe­riod and some R200m of debt was re­paid.

A focus on cost re­duc­tion was sus­tained.

“We are now in the back-end of our dis­pos­als,” a process that was ex­pected to com­plete be­fore the June year-end, Flana­gan said.

The head­line loss im­proved to R205m (1.1 cents per share) from a res­tated loss of R703m (5.5c per share).

The loss per share im­proved to 0.9c per share, from a loss of 7.2c per share.

Net as­set value per share de­creased to 12.3c per share from 12.7c per share.

As the group tran­si­tions, its main mar­ket sec­tors would be con­tract min­ing in South Africa and the rest of sub-Sa­ha­ran Africa, and con­struc­tion in Aus­tralia, New Zealand and South­east Asia.

SIPHIWE SIBEKO Reuters

A CON­STRUC­TION worker is seen in front of an Aveng Gri­naker-LTA com­pany logo at a site in Sand­ton, north of Jo­han­nes­burg, in this file pic­ture. |

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