Aveng tries to do things differently
The construction group wants to develop agile new operating model
Aveng has completed a strategic review involving “a very thorough and robust interrogation of all parts of the business” as it tries to turn its fortunes around. The construction group said on Tuesday this came as its valuation was at a “significant discount” to the sum-of-the-parts valuation. The review’s finalisation coincides with the interim period ended December 2017 and points to a slimming down and restructuring of the company around its Moolmans mining business and the McConnell Dowell civil engineering operations that service Australasia. This includes selling off noncore assets to create “a sustainable capital and funding model”. The company, which built Sasol’s new multibillion-rand Sandton headquarters, reported a headline loss of R335m in the interim period to December 2017 from a loss of R391m in the six months to December 2016, even as revenue jumped 13% to R16bn. But net operating earnings rose from a loss of R164m in December 2016 to a profit of R94m.
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