Aveng remains in the red, despite valiant effort from Australian subsidiary

Aveng's Australian subsidiary McConnell Dowell contributed a profit of R51m in the six months to end-December from a R47m loss in the corresponding period.

By Robert Laing

28 Feb 2018

Aveng remains in the red, despite valiant effort from Australian subsidiary

But this was not enough to bring the embattled construction group, which has not paid a dividend since 2012, back to profit.

Echoing the results of competitor Wilson Bayly Holmes-Ovcon (WBHO), which also released its interim results on Tuesday morning, Aveng reported strong growth in Australia helped its top line.

Aveng's interim revenue grew 13% to R16bn, boosted by the revenue contribution from its Australian division doubling to A$372m (about R3.4bn).

Much as WBHO's interim bottom line was dragged down by a R170m settlement agreement with the government in 2016, Aveng's was dragged down by R165m.

Despite having booked the full fine in its 2016 interim results, Aveng's after-tax loss only narrowed to R346m from R429m. But its total loss halved to R504m from R1.1bn. In its 2016 interim results, Aveng reduced its after-tax loss by a further R709m.

The group's chairman, Eric Diack, who has been acting CEO following Kobus Verster's return to ArcelorMittal SA, said in his outlook: "Domestically, the outlook for the infrastructure market remains subdued with limited visibility on large-scale projects.

"However, recent changes in the political environment have led to an improved sentiment in SA. There are opportunities to increase exports for the manufacturing operations."

Source: BDpro

Source: I-Net Bridge

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