The Aveng share price slid as much as 9% in late trade on Wednesday after SA’s largest construction and engineering company by revenue flagged unrelentingly tough conditions in its operations.
The company expects headline earnings per share in the year to February to drop by more than 20% from a year ago. The dismal performance followed weak operational performance, as well as costs associated with contract claims.
Aveng said in a statement that it had noted increasingly difficult, litigious and costly processes in bringing long-outstanding claims to commercial conclusion.
"Despite the unchanged view of the merits of its existing claims, management is in the process of evaluating previously recognised uncertified revenue considering the above-mentioned conditions," it said. "Such an adjustment may lead to a further reduction in earnings beyond currently anticipated results."
The stock was off 5.88% to R5.28 on the JSE, valuing the company at R2.2bn.