Construction company Aveng says it expects to report a headline loss for the six months ended December 31 2016, as a result of two nonrecurring exceptional items including a settlement agreement charge relating to transformation in the sector. The company said in a trading statement on Monday it expected a loss of between R290m and R310m, 25% to 34% lower than the headline loss of R231m it reported in the previously comparable period. Aveng said the bigger loss was attributable to a settlement agreement of R165m (R255m payable in instalments over 12 years) concluded on October 11 last year with the South African government, as well as a debt of R206m from Kenmare Resources, for work done in 2011-12. In December last year, an arbitration tribunal issued a partial ruling awarding Aveng the R206m in full, with interest. The debt was expected to be paid before year-end, with an insurance claim outstanding. Excluding the financial effect of the above-mentioned nonrecurring items, the gro...
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