REVENUES PLUNGE
Aveng reports headline loss of R76m
Shares hold steady after construction and engineering Aveng reports revenues plunged 21%
Aveng’s share price was down only 0.98% on Friday’s close, despite the group reporting that revenues plunged 21% to R14.3bn in the six months to December from the same period in 2015. The JSE-listed construction and engineering firm, which surprised the market on Monday by releasing its results a day early, reported an adjusted headline loss of R76m in the period compared with a headline loss of R231m for the comparative half-year. A voluntary settlement agreement with the government on transformation in the industry would cost Aveng R165m. It said on Monday it would pay out R21.25m a year over the next 12 years in this regard. As part of the transformation agreement, Aveng had in late 2016 concluded a binding agreement with Kutana Construction, in which a 51% beneficial interest in its loss-making Aveng Grinaker-LTA business would be sold to black-owned interests. With the inclusion of Aveng Water, the net asset value of the business was R71m, and the net loss after tax was R343m f...
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