Aveng turnaround plan on track as losses widen
The plan to secure construction group Aveng’s future is well on track, with its management team having successfully restructured the firm into two core businesses — McConnell Dowell and Moolmans.
These businesses had grown their order book 20% to R15.6bn at the end of December, Aveng said on Monday.
The local construction sector is going through a difficult period, which had prompted Aveng to transition into an international infrastructure and resources business.
It is selling non-core assets, with the majority of those businesses expected to be sold by June, said executive chair Eric Diack. "Our strategy remains firmly focused on improving and optimising the performance of our two core businesses."
Aveng reported a net loss of R920m for the six months to December. This was compared with a net loss of R346m for the six months to December 2017. Much of the loss was related to SA surface mining group Aveng Moolmans, which posted a R166m operating loss.
Aveng’s headline loss per share decreased to 6.1c for the reporting period from 62.2c in the comparable period.
This was because of the significant increase in the weighted average number of shares in the period as a result of the shares issued in a rights offer in July 2018, as well as shares issued in relation to the redemption of a convertible bond in September.
"While there have been some challenges at the group’s mining business in the first half of the year, we are confident the group-led turnaround intervention at Moolmans is starting to deliver results," Diack said.